{"slug": "big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he", "title": "'Big Short' investor Michael Burry unpacks 'serious competition' for Nvidia that he thinks could shake up the AI trade", "summary": "Michael Burry, the investor known from 'The Big Short,' warned in a Substack post on Tuesday that Nvidia faces 'serious competition' from AI startup Etched, which has raised $700 million at a $21 billion valuation and counts former Nvidia staff as about 15% of its workforce. Burry cited reports that Etched's AI chips achieved inference workloads in 44 days, compared to the typical six months or longer, and claimed an insider told him the chips offer 10x performance at lower cost per die, signaling potential disruption to the AI trade.", "body_md": "# 'Big Short' investor Michael Burry unpacks 'serious competition' for Nvidia that he thinks could shake up the AI trade\n\n[Business Insider](https://www.businessinsider.com)\n\nMichael Burry flagged a potential \"disruption\" for AI stocks that could stem from Etched, the tech startup hiring top Nvidia talent.\n\n- \"Big Short\" trader Michael Burry warns that Nvidia faces big competition from Etched.\n- He pointed to key details about the\n[AI startup](/category/startups), citing public reports and information he got from an insider. - The company could spark a broader reaction across the AI trade, Burry speculated.\n\n[Michael Burry](https://www.businessinsider.com/michael-burry-ai-tech-stocks-euphoria-internet-housing-bubbles-enron-2026-8) has fired another shot at AI kingmaker [Nvidia](https://markets.businessinsider.com/stocks/nvda-stock).\n\nThe investor, who rose to fame in \"The Big Short,\" took aim at the Jensen Huang-led chipmaker in a new Substack post on Tuesday. This time, he flagged what he sees as \"serious competition\" for the [GPU](/glossary/gpu) firm, pointing to reports about [Etched](https://markets.businessinsider.com/news/stocks/etched-raises-700m-at-a-21b-valuation-and-completes-first-customer-delivery-to-jane-street-1036471031), an AI startup that has nabbed top talent at Nvidia and just secured a $700 million funding round with Jane Street, putting its valuation at a reported $21 billion.\n\nBurry pointed to key details about Etched's recruitment and the deployment of its AI chips, citing the Journal's report and information he received from an unnamed company insider.\n\n**The firm is efficient.** Etched said it took only 44 days to have its AI chips running[inference](/glossary/inference)workloads. That process generally takes six months or longer.**The firm hires from Nvidia**. Etched also has a large group of staffers who[previously worked at Nvidia](https://www.businessinsider.com/ex-nvidia-employees-new-ai-startup-ventures-2026-6), making up around 15% of its total workforce, the Journal's report said.\n\n\"This is serious competition for NVDA,\" Burry wrote on Tuesday. \"I am told by a semi insider this is looking at 10x performance at lower cost per die. That it came up so fast is a tell that disruption is in the pipeline, I am told,\" he added of the broader ramifications for the [artificial intelligence trade](https://www.businessinsider.com/anthropic-openai-ipo-ai-tech-stocks-china-kimik3-steve-eisman-2026-8).\n\nBurry, a vocal skeptic of the AI rally, has repeatedly bashed Nvidia since returning to social media late last year. In the past, he's raised alarm on the [circular nature of Nvidia's deals](https://www.businessinsider.com/mark-cuban-michael-burry-nvidia-ai-deals-boom-microchips-infrastructure-2026-7) and troubling technical signals flashing in [Nvidia's stock](https://www.businessinsider.com/big-short-michael-burry-nvidia-stock-price-crash-ai-tokenmaxxing-2026-5). He's also placed [bets against Nvidia](https://www.businessinsider.com/big-short-michael-burry-substack-short-nvidia-microsoft-meta-alphabet-2026-1) and other stars in the AI trade, like [Oracle and Nebius](https://www.businessinsider.com/big-short-michael-burry-oracle-nebius-ai-stocks-data-centers-2026-8), which fall within his larger thesis that AI is a market bubble that's poised for a large correction.\n\n[Business Insider](https://www.businessinsider.com/big-short-michael-burry-nvidia-ai-stocks-etched-competition-2026-8)\n\nGet AI news in your inbox\n\nDaily digest of what matters in AI.\n\n## Key Terms Explained\n\n[Artificial Intelligence](/glossary/artificial-intelligence)\n\nThe science of creating machines that can perform tasks requiring human-like intelligence — reasoning, learning, perception, language understanding, and decision-making.\n\n[GPU](/glossary/gpu)\n\nGraphics Processing Unit.\n\n[Inference](/glossary/inference)\n\nRunning a trained model to make predictions on new data.\n\n[NVIDIA](/glossary/nvidia)\n\nThe dominant provider of AI hardware.", "url": "https://wpnews.pro/news/big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he", "canonical_source": "https://www.machinebrief.com/news/big-short-investor-michael-burry-unpacks-serious-competition-v7pu", "published_at": "2026-08-19 17:17:31+00:00", "updated_at": "2026-08-19 17:59:06.998457+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-startups"], "entities": ["Michael Burry", "Nvidia", "Etched", "Jane Street", "Jensen Huang", "Business Insider"], "alternates": {"html": "https://wpnews.pro/news/big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he", "markdown": "https://wpnews.pro/news/big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he.md", "text": "https://wpnews.pro/news/big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he.txt", "jsonld": "https://wpnews.pro/news/big-short-investor-michael-burry-unpacks-serious-competition-for-nvidia-that-he.jsonld"}}