Michael Burry has doubled down on his concerns of an AI bubble, drawing similarities between Cisco during the late ‘90’s dot-com crash and one key tech company today.
“Folly makes money. Creative destruction and manic folly are exactly why the U.S. is the center of innovation in the world,” Burry said. “Companies are allowed to innovate themselves to death. And ever more spring up to do the same. Sometimes the new company is the same company on a pivot.”
Today, Burry argued, history is repeating itself with today’s AI boom: “And once again there is a Cisco at the center of it all, with the picks and shovels for all and the expansive vision to go with it,” Burry said. “Its name is Nvidia.”
“We reinvented computing for the first time in 60, 70 years,” Huang said. “And so all of the computers that have been installed around the world is being modernized to accelerated computing and video GPUs and to artificial intelligence. And so this build-out is going to last us many years to come.”
Nvidia did not immediately respond to Fortune’s request for comment.
