"Michael Burry says Nvidia is pushing the idea that building graphics chips that consume more and more power is the best path to advancing AI - and the result could be the US losing the AI race to China. "Exactly and sadly," Burry wrote on X late Saturday, responding to another user's comment that called Nvidia the "gangster of the AI neighborhood" as it has "shut down any narrative that even hints at reducing GPU demand.""
"Why China will win AI in one chart. Power hungry Nvidia chips are not the way forward for the U.S. It is not just the total power advantage. It is the slope. pic.twitter.com/qNXh1e4lZj- Cassandra Unchained (@michaeljburry) December 20, 2025 Nvidia has framed AI innovation as "just figuring out how to power and to cool bigger, hotter silicon," Burry said. But China's huge lead in building out power sources means companies in the US are "plowing capital into a race it is structurally positioned to lose.""
Nvidia is promoting ever-more power-intensive GPUs as the primary route to AI advancement. China already has more than double America's electric generation capacity and is expanding energy infrastructure faster, creating a structural power advantage. US firms investing heavily in high-power GPUs face a competitive disadvantage against regions with greater electricity capacity. The US should shift focus toward efficient, task-specific AI-tuned ASICs that reduce power and cooling demands. Nvidia's commercial agreements with many industry players give the company dominant influence over development and chip deployment choices.
Read at Business Insider
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