Tom McKenzie

Yeah, absolutely.

Michael Burry putting on famously short positions, so shorting the stocks of Nvidia and Palantir before he wrapped up his fund.

His concern does focus on the depreciation of some of these assets.

By assets, I'm talking about specifically these AI chips, very expensive AI accelerators, 90%.

of the market share is dominated by Nvidia.

So across the sale of these chips, Nvidia has that significant market gain versus its rivals.

And the concern is that as you get newer versions of these chips, the older ones essentially become less valuable and Michael Burry

making the argument that companies, the hyperscalers, so the Microsofts and Alphabets and Metas of the world, are not properly accounting for how quickly these assets depreciate.

The other part of the concern, and it kind of ties into this, that you hear voice from the sceptics around the AI bubble, is that there are comparisons, they say, with what happened in the late 1990s.

1999, early 2000, the dot-com bubble, when it was the telecom equipment makers that, leading up

to all of the online expectations around how our digital economy was going to change, spent huge amounts of money on building the infrastructure to power the dot-com era, and ended up losing a lot of money because the gains didn't come as quickly.

The technology didn't evolve as rapidly as they had expected.

Of course, on the back of that, you did get...

some very significant players like Amazon, who came through the dot-com bubble and, of course, now remain one of the most valuable companies on the planet.

But there was a lot of capital, there was a lot of investment that was burnt in that process.

And so that is another comparison that people are making.

It's the depreciation around the assets and the chips that they're worried about, but also comparisons with what happened during the dot-com era and the pain that was felt by those telecom equipment makers that sunk so much money and to which they accumulated huge losses.

So pushback to the depreciation argument would come from NVIDIA.

And we've heard that recently from the CEO, Jensen Huang.

And he's made the case that, in fact, even their older AI chips, one of their older versions is called Hopper.