'Big Short' investor Michael Burry warns the US will lose the AI race to China if it banks on Nvidia's 'power hungry' chips (www.businessinsider.com)

Michael Burry, the investor known for profiting from the housing market collapse, has criticized Nvidia for promoting its "power hungry" AI microchips as the standard for AI development. He warns that this approach could jeopardize the U.S.'s competitive edge in the AI race against China, which boasts more than double the electrical generation capacity of the U.S. and is rapidly expanding its energy infrastructure. Burry suggests that while Nvidia maintains dominance through strategic partnerships and significant market success, the focus should shift towards developing more efficient application-specific integrated circuits (ASICs) tailored for specific AI tasks. Burry's commentary adds a layer of urgency to the ongoing discourse within the AI/ML community, highlighting the need for sustainable and energy-efficient technology amid rising electricity demands. His criticisms of Nvidia's deals with major AI players—like OpenAI and Oracle—hint at potential vulnerabilities in the ecosystem bolstered by power-intensive chips. As Nvidia continues to thrive, with its stock soaring and revenues skyrocketing, Burry's warnings call into question the longevity of this trajectory and underlying economic dynamics, urging a reconsideration of how the industry can innovate responsibly and competitively.