Burry Accuses Nvidia of 'Mafia-Like' Tactics in AI Deal Collapse

Legendary investor claims Nvidia paid $150 million to block rival AMD from major OpenAI-Oracle project

Mar. 12, 2026 at 12:18pm

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Renowned investor Michael Burry has accused Nvidia of engaging in anti-competitive behavior to prevent rival chipmaker AMD from participating in a major AI infrastructure project involving OpenAI and Oracle. Burry alleges that Nvidia paid a $150 million deposit to a site developer to block AMD from securing the hardware contract, describing the move as 'mafia-like' and calling for an antitrust investigation into the semiconductor giant.

Why it matters

Burry's claims highlight growing concerns about the concentration of power in the AI chip market, where Nvidia has become the dominant supplier of the specialized processors that power the massive data centers required for advanced AI development. As the AI industry continues to boom, access to these critical semiconductors has become a central pillar of competition, raising questions about potential market imbalances and the need for greater oversight.

The details

According to Burry, the controversy stems from a planned data center collaboration tied to the Stargate project, a joint venture involving OpenAI, Oracle, and other investors aimed at building large-scale AI computing facilities in the U.S. The project had reportedly been designed around Nvidia's Blackwell chip infrastructure, but OpenAI later shifted its interest to Nvidia's next-generation Vera Rubin chips, effectively derailing the project and placing Oracle in a difficult position. Burry claims that Nvidia then intervened financially, preventing rival chipmaker AMD from becoming involved in the project.

  • On March 10, 2026, Michael Burry publicly accused Nvidia of anti-competitive behavior.

The players

Michael Burry

A legendary investor known for his successful bet against the U.S. housing bubble prior to the 2008 financial crisis, Burry has now raised concerns about Nvidia's alleged anti-competitive tactics in the AI chip market.

Nvidia

A dominant supplier of graphics processing units used to train and run modern AI models, Nvidia has become a central player in the booming AI industry as demand for its specialized chips has surged.

AMD

A rival chipmaker to Nvidia, AMD has been seeking to close the gap with competing chips in the AI hardware market.

OpenAI

An artificial intelligence research company that is a key partner in the Stargate project, a major AI infrastructure initiative.

Oracle

A technology company that was also involved in the Stargate project, which had reportedly been designed around Nvidia's Blackwell chip infrastructure.

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What they’re saying

“Nvidia paid a $150 million (£117m) deposit to a site developer specifically to prevent Advanced Micro Devices (AMD) from securing the hardware contract. He described the move as 'mafia-like' and called for a formal antitrust investigation into the semiconductor giant.”

— Michael Burry

What’s next

Burry's allegations have raised calls for a formal antitrust investigation into Nvidia's practices in the AI chip market, as regulators and industry observers scrutinize the potential impact of the company's dominance on competition and innovation.

The takeaway

Burry's claims underscore the growing power and influence of Nvidia in the AI industry, as the company's control over the critical semiconductors that power advanced AI systems has become a central point of contention. This case highlights the need for greater oversight and scrutiny of the concentration of market power in the technology sector, particularly as the AI boom continues to reshape the global economy.