basilp
3.4K posts





🚨Michael Burry just said Elon Musk and Nvidia's deal is built on fake numbers. Burry published a detailed breakdown calling the entire structure "Fugazi", his word for fake. He is alleging that billions of dollars in Nvidia chips are being hidden off balance sheets, and that American retirees are unknowingly funding the whole thing. Nvidia, the world's largest AI chip company sold $5.4 billion worth of its most advanced GPUs, the GB200, to a company called Valor. Valor is not a real operating business. It is a special purpose vehicle, a shell company created specifically to hold these chips and nothing else. Nvidia also invested $1.9 billion of its own money directly into Valor on top of the sale. Those 100,000+ chips are now physically inside xAI's data center. xAI is Elon Musk's artificial intelligence company, the one that builds Grok. xAI is using every single one of those chips right now to run its AI models. But here is what Burry is flagging. Neither Nvidia nor xAI owns those chips on paper. Valor, the shell company holds legal title. That means $5.4 billion in GPU assets do not show up on Nvidia's balance sheet as inventory. They do not show up on xAI's balance sheet as assets. They are legally invisible to both companies. Nvidia gets to book the $5.4 billion as a completed sale and record it as revenue. xAI gets full use of the chips without owning them. And the risk disappears into a shell company in the middle. Now here is where American retirees enter the picture. Valor needed $3.5 billion in debt to fund this structure. Apollo provided it. Apollo is one of the largest asset managers on earth with $1.03 trillion under management and $834 billion specifically in private credit. Apollo raised the $3.5 billion, packaged it into debt securities, and sold those securities to Athene. Athene is Apollo's own insurance company. It sells fixed and indexed annuities, retirement savings products, to ordinary Americans. When a retiree buys an Athene annuity, they believe their money is sitting in safe, stable investments. That money is now inside a structure funding Elon Musk's AI data center. The numbers inside Athene are most alarming. Athene holds $74.2 billion in reserves. It has moved $217 billion in assets into a captive insurer based in Bermuda, meaning those assets sit outside normal US insurance regulation and oversight. Of the entire portfolio, 34.7%, equal to $103 billion, is classified as Level 3 assets. Level 3 is an accounting classification that means there is no observable market price for these assets. No outside party can independently verify what they are actually worth. The leverage sitting on top of those unpriced assets is 16 times. Burry's says: Every step of this structure is technically legal and publicly disclosed. But the entire thing was deliberately engineered across 8 to 12 steps to move credit risk off balance sheets and away from any market pricing. - Nvidia books the revenue. - Apollo collects the fees. - xAI gets the computing power. - And retirees sitting at the bottom of a 16x leveraged Bermuda insurance structure, holding $103 billion in assets with no market price carry the risk without knowing it exists.




Hey there - I’ve been a founder a lot too. It’s exciting to work on pushing the world forward. But it’s wrong to advocate for policy that would hurt others, even it might end up being true when your project is working at scale in every possible area. I’m sure AI + your work can do a lot. But there aren’t and won’t be studies and proof points in the hundreds of possible therapeutics areas that monkeys are 100% not needed for a long time, that any regulatory body would accept right away. You won’t succeed or help more people by fighting on this point to block all monkeys today. Prove the first areas you are sure about and lobby to allow your solution, get it allowed to replace them in those areas - sure. Maybe possible - I hope so even if my estimation is that it’s farther away than you think. But don’t fight battles that ally you with the emotionally vulnerable naive and PETA anti-human people; don’t block the processes allowed today, as doing so would lead to the deaths of many people in the present in the meantime while taking away US investment and jobs and sending more to China.












The ramp up of cancer immunotherapy is remarkable. Now we're seeing vaccines achieve some cures or remissions in the most refractory cancers: pancreatic, melanoma, glioblastoma, renal, triple-negative breast cancer. ✓ out the new Ground Truths (link in profile)






This is wildly misunderstood. No one, absolutely no one, can buy Trump. He’s 80, has billions. You think you could sway the President with money? There are people around people who are around people who are around him who will take money and pretend to try and make something happen. Caveat emptor.




This is wildly misunderstood. No one, absolutely no one, can buy Trump. He’s 80, has billions. You think you could sway the President with money? There are people around people who are around people who are around him who will take money and pretend to try and make something happen. Caveat emptor.















