Nvidia CEO Jensen Huang responded to criticism from investor Michael Burry regarding the company's business model. Burry, who manages Scion Asset Management, has held short positions on Nvidia stock since late 2025, citing concerns over what he terms circular financing.
The core of Burry's argument involves Nvidia's credit support for an OpenAI data center project in Ohio. According to the company's second-quarter 10-Q filing, this credit guarantee reaches $105 billion for a facility with a 4.25 gigawatt IT load.
Huang countered these claims by highlighting GPU rental performance. As of September 8, rental rates for H100 GPUs increased by 22% month-over-month to $3.28 per hour. Nvidia positions its chips as durable assets with a service life of four to six years.
Nvidia CFO Colette Kress stated that the credit arrangements aim to secure infrastructure rather than inflate sales. Investors are now monitoring rental economics and utilization patterns as key indicators of whether AI infrastructure demand remains sustainable.
