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Famed investor Michael Burry has targeted Nvidia Corp.’s push to unlock over $500 billion in artificial intelligence infrastructure financing, calling the initiative a “Wall Street stunt” that relies on opaque private credit arrangements. <\/p>\n
Inside Nvidia’s Deal Structure <\/p>\n
Nvidia recently signed a memorandum of understanding with six major Wall Street asset managers\u2014Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR\u2014to create specialized compute financing platforms. <\/p>\n
The initiative aims to help hyperscalers and enterprises finance data centers through institutional credit rather than balance sheets alone. Nvidia CEO Jensen Huang framed the effort as the “first time that technology chips have become an investable asset class,” functioning like productive “infrastructure”. <\/p>\n
Don’t Miss: <\/p>\n
However, Burry challenged the structure, pointing out that the deal “involves Nvidia taking 25% stakes & providing residual value guarantees on purchase of its chips.” <\/p>\n
Describing the mechanism as being “All filtered through Private Equity’s Private Credit schemes,” Burry warned social media followers, “I have an idea of how that will look. Meet the new Boss. Same as the old Boss.” <\/p>\n
That $500 billion $NVDA<\/a> Wall Street stunt involves Nvidia taking 25% stakes & providing residual value guarantees on purchase of its chips. All filtered through Private Equity’s Private Credit schemes. I have an idea how that will look. Meet the new Boss. Same as the old Boss pic.twitter.com\/vzAnWLkhxI<\/a> <\/p>\n \u2014 Cassandra Unchained (@michaeljburry) August 12, 2026<\/a> <\/p>\n Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a> <\/p>\n Skepticism and Market Hype <\/p>\n Market strategist Ed Yardeni voiced similar caution regarding Wall Street’s excitement over the non-binding agreements, describing the market’s response as “kind of ho hum.” <\/p>\n Warning on CNBC, he said that “there’s a little bit of hype so far.” Yardeni noted that investors must be “pretty selective” because capital markets will ultimately create “winners and losers.” <\/p>\n See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier.<\/a> <\/p>\n Mounting Debt and Private Credit Risks <\/p>\n Concerns surrounding heavy borrowing for AI infrastructure extend across the broader credit landscape. Goldman Sachs Research estimates that AI-related debt issuance has reached nearly $500 billion in 2026, with credit sales desks noting investor “indigestion” over rising duration and issuer concentration. <\/p>\n Story Continues <\/p>\n At the same time, a report from the Bank for International Settlements (BIS) cautioned that Business Development Companies (BDCs) have lent $115 billion to software firms, representing over 80% of their technology portfolios. <\/p>\n The BIS warned that generative AI disruption poses unpriced revenue risks to these software borrowers, compounding potential vulnerabilities across direct lenders and the private credit ecosystem. <\/p>\n How Has NVDA Performed In 2026? <\/p>\n NVDA shares rose 16.62% year-to-date, advanced 19.47% over the last year, and 14.44% over the last six months. It closed 0.02% lower at $217.50 per share on Tuesday, and it was 1.17% higher in premarket on Wednesday. <\/p>\n Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, medium, and long terms, with a poor value score. <\/p>\n Photo courtesy: Shutterstock <\/p>\n Read Next: Think you’re saving enough for your kids? You might be dangerously off \u2014 see why<\/a> <\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. <\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. <\/p>\n Realberry <\/p>\n Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities <\/a>backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests. <\/p>\n FarmTogether <\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches. <\/p>\n Fundrise <\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. <\/p>\n Mode Mobile <\/p>\n Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day.<\/a> Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.\u00a0 <\/p>\n EquityMultiple\u00a0 <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process. <\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. <\/p>\n