AI Bubble Is Ignoring Michael Burry’s Fears: Chris Bryant

Costing tens of thousands of dollars each, Nvidia Corp.’s pioneering AI chips make up a hefty chunk of the $400 billion that Big Tech plans to invest this year — a bill expected to hit $3 trillion by 2029.

But unlike 19th-century railroads, or the Dotcom boom’s fiber-optic cables, the graphics-processing units (GPUs) fueling today’s AI mania are short-lived assets with a shelf life of perhaps five years.

As with your iPhone, this stuff tends to lose value and may need upgrading soon because Nvidia and its rivals aim to keep launching better models. Customers like OpenAI will have ...