Burry Flags Nvidia as 'Serious Competition' Emerges from AI Startup

Michael Burry, the investor who gained fame for his role in 'The Big Short', has once again taken aim at Nvidia. This time, he's pointing to a potential threat from Etched, an AI startup that has secured a $700 million funding round and a valuation of $21 billion.

Burry highlighted several key details about Etched, including its recruitment of top talent from Nvidia and the deployment of its AI chips. According to reports, it took only 44 days for Etched's AI chips to run inference workloads, a process that typically takes six months or longer.

Etched has also hired around 15% of its total workforce from Nvidia. Burry views this as 'serious competition' for Nvidia and believes that disruption is in the pipeline. He noted that he was told by an insider that Etched's performance could be up to 10x better at a lower cost per die.

Burry has been vocal about his skepticism of the AI rally, repeatedly bashing Nvidia since returning to social media last year. He has also placed bets against other stars in the AI trade, such as Oracle and Nebius, citing concerns that AI is a market bubble poised for correction.