Michael Burry Alleges Nvidia Paid $150M to Block AMD AI Contract
Michael Burry claims Nvidia paid $150 million to block AMD from securing a major AI infrastructure contract linked to Oracle’s data-center project. He also says the Justice Department has investigated Nvidia for nearly two years, raising potential antitrust concerns in the AI chip market.
1. Burry's Allegations
Michael Burry described Nvidia’s tactics as 'mafia-like', claiming the chipmaker paid roughly $150 million to prevent AMD from securing a contract tied to an AI data-center project. He suggested Nvidia leveraged its market power to influence customer decisions in the AI chip market.
2. Blocked AI Infrastructure Deal
The dispute centered on an Oracle-linked data-center build designed around Nvidia’s next-generation Blackwell chips. Burry alleges Nvidia intervened financially to derail AMD’s bid for the contract, effectively blocking AMD’s participation in the project.
3. Justice Department Probe
Burry stated that the U.S. Department of Justice has been investigating Nvidia’s AI chip market conduct for nearly two years, although no public confirmation has been made. This ongoing inquiry could introduce regulatory hurdles for Nvidia and reshape competitive dynamics.
4. Implications for AMD
If regulators pursue antitrust action, AMD could gain access to contracts previously dominated by Nvidia and strengthen its position in AI infrastructure markets. The episode highlights potential opportunities for AMD amid increased market scrutiny of Nvidia’s practices.