Michael Burry Backs Ken Griffin's "Obvious" GPU Warning as Market Risk Multiplies

Michael Burry, known for betting against housing before 2008, backed Ken Griffin’s warning that GPU rental prices could “go into freefall” if supply ever surpasses demand. Reacting on X to a post summarizing Griffin’s bear case, Burry said the argument is “obvious to most with a working brain cell.” Griffin compares the risk to the 2000 telecom buildout, warning that once GPU provisioning exceeds demand, marginal pricing could drop sharply. A glut would pressure Nvidia and AMD through customer orders, while CoreWeave could be hit first because it earns revenue directly from GPU rentals. The article cites Nvidia’s fiscal 2023 gross margin falling to 56.9% from 64.9%.