Aug. 13 at 6:41 AM
$NVDA $BLK $APO $GS $BX
Michael Burry slams Nvidia’s
$500B Wall Street financing deal as a 2008-style "Wall Street Stunt."
Source: Seeking Alpha ("Burry slams Nvidia's
$500B AI financing as a 2008-style 'Wall Street stunt'")
Here is the exact 6-step circular pipeline Burry exposed:
1. Pensioner Money: Retirees pay annuity premiums to Apollo's insurance arm, Athene.
2. Offshore Loophole: Apollo routes these funds through Bermuda offshore reinsurers to bypass US capital rules & maximize leverage.
3. Debt Injection: Apollo issues
$3.5B in asset-backed debt to a Special Purpose Vehicle (SPV / Valor).
4. Nvidia Equity Kick: NVDA injects
$1.9B of its OWN cash into the same SPV as equity.
5. Circular Revenue: The SPV uses the combined
$5.4B to buy NVDA's GB200 GPUs (NVDA books this as "organic revenue").
6. Risk Offloading: The SPV leases GPUs to AI startups (xAI). If GPU values crash or power grid delays hit, retirement funds swallow 75% of the loss while NVDA caps its exposure at 25%.