Over the weekend, ‘Big Short’ investor Michael Burry and tech commentator Ed Zitron voiced concerns after a report said Nvidia Corp (NASDAQ:NVDA) is considering backing billions of dollars in financing to support OpenAI’s massive AI infrastructure expansion.
Nvidia Reportedly Weighs Financing Guarantee For OpenAI
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 that could ultimately cost more than $500 billion, according to a Wall Street Journal report citing people familiar with the matter.
The proposed guarantee would help OpenAI secure favorable financing for a planned 10-gigawatt AI campus despite the ChatGPT maker lacking an investment-grade credit rating.
The report said Nvidia would guarantee financing tied to the data center lease and construction debt, while separately discussing financing for the purchase of Nvidia chips that could total another $350 billion.
The project is being developed by SoftBank Group’s (OTC:SFTBF) (OTC:SFTBY) energy subsidiary and is expected to deliver about 800 megawatts in its first phase by 2028.
Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Anthropic have also reportedly expressed interest in the site.
Nvidia and OpenAI did not immediately respond to Benzinga’s request for comments.
Read Also: Nvidia Turns Matchmaker as AI Companies Scramble for Data Center Space and Electricity
Michael Burry, Ed Zitron Raise Concerns Over AI Financing Structure
Burry reacted to the report on X, writing, “Around and around we go. Nvidia to guarantee $200 billion of ChatGPT’s spending on $NVDA chips.”
Around and around we go.
— Cassandra Unchained (@michaeljburry) July 27, 2026
Nvidia to guarantee $200 billion of ChatGPT’s spending on $NVDA chips. pic.twitter.com/9iSIUd3bk2
On Friday, Burry increased his short position in Nvidia Corp. (NASDAQ:NVDA) while also adding to several other bets, leaving his bearish positions against Tesla Inc. (NASDAQ:TSLA) unchanged.
Breaking: Michael Burry has disclosed his updated positions
— Michael Burry Stock Tracker ♟ (@burrytracker) July 24, 2026
He:
• Added to Micron $MU short at $933.86
• Added to Nvidia $NVDA short at $210.28
• Added to Caterpillar $CAT short at $893.49
• Added to Semiconductor ETF $SOXX short at $535.83
• Added to Flutter $FLUT long at… pic.twitter.com/BzAlYHbvQI
Meanwhile, Zitron questioned both the financing structure and SoftBank’s involvement.
“This is such an insane thing to do on so many levels and it is about as bearish as it gets, especially considering this it is being built BY SOFTBANK! Also where’s the money gonna come from? Very silly stuff all round,” Zitron wrote.
This is such an insane thing to do on so many levels and it is about as bearish as it gets, especially considering this it is being built BY SOFTBANK! Also where’s the money gonna come from? Very silly stuff all round https://t.co/RfdONR71CN https://t.co/p3O6oNhUM8 pic.twitter.com/4g77Wa1Zjy
— Ed Zitron (@edzitron) July 27, 2026
Price Action: Nvidia shares closed Friday down 0.92% at $206.84, slipping an additional 0.02% to $206.80 in after-hours trading, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Tigarto on Shutterstock.com
