Nvidia Considers Backing $250 Billion in OpenAI Data Center Financing, Michael Burry Warns of Endless Cycle

July 27, 2026 - 01:58

Over the weekend, "Big Short" investor Michael Burry and tech commentator Ed Zitron voiced concerns after a report surfaced that Nvidia Corp is considering backing billions of dollars in financing to support OpenAI's massive AI infrastructure expansion.

According to sources familiar with the matter, Nvidia is in talks to provide a roughly $250 billion financial backstop for OpenAI as part of a massive data center project in southern Ohio. The total cost of the project could ultimately exceed $500 billion, making it one of the largest infrastructure investments in the technology sector.

Burry, who famously predicted the 2008 housing market collapse, took to social media with a simple but pointed response: "Around and around we go." The comment appeared to reference the cyclical nature of tech investment bubbles, where companies pour enormous sums into infrastructure that may not generate proportional returns.

Ed Zitron, a well-known tech commentator, echoed similar skepticism. He questioned the sustainability of a model where chip manufacturers effectively guarantee financing for their own biggest customers. Critics argue this creates a circular dependency where Nvidia profits from selling chips to OpenAI, while also underwriting the very infrastructure needed to run those chips.

Proponents of the deal argue that the scale of investment is necessary to maintain America's competitive edge in artificial intelligence. OpenAI has been racing to expand its computing capacity as demand for its AI models continues to grow. The Ohio data center project is expected to create thousands of jobs and position the region as a hub for advanced computing.

Neither Nvidia nor OpenAI have officially confirmed the financing discussions. The deal, if finalized, would represent one of the largest corporate financing arrangements in history and could reshape the landscape of AI infrastructure investment.