Nvidia name-checks Michael Burry in secret memo pushing back on AI bubble allegations (www.cnbc.com)

Nvidia quietly circulated a private memo to sell-side analysts directly namechecking investor Michael Burry to rebut his claim that today's AI infrastructure boom resembles the late‑1990s dot‑com/telco bubble with Nvidia as the “Cisco” of AI. Burry has argued that massive capex plans, extended depreciation schedules and soaring valuations signal an overbuilt supply side versus durable demand; Nvidia pushed back, disputing his accounting and market-structure assertions and defending the durability of GPU economics. Technically, Nvidia said customers depreciate GPUs over four to six years based on real-world longevity and utilization, and that A100s (launched in 2020) remain highly utilized and economically valuable beyond the two-to-three-year life critics cite. The memo also dismisses claims of “circular financing,” noting strategic investments are a small revenue slice and startups largely fundraise from outside investors. The exchange matters to AI/ML practitioners and investors because GPU useful life, utilization patterns and depreciation policies materially affect TCO, capex planning and valuation models for AI infrastructure — and the outcome of this debate could influence spending, supply-chain strategies and market volatility as the sector scales.