- Burry said OpenAI left the Oracle project because it favored Nvidia’s Ruben chips over Oracle’s planned Blackwell setup.
- Oracle denied reports that its OpenAI partnership collapsed and said the Abilene expansion remains on track.
- Burry alleged that Nvidia intervened financially to prevent Advanced Micro Devices from obtaining the contract tied to the project.
Michael Burry, the investor famous for predicting the housing market crash and profiled in Michael Lewis’ book “The Big Short”, has criticized Nvidia’s aggressive tactics in the data center market on Tuesday, highlighting concerns over potential antitrust issues.
In a post on X, Burry stated that OpenAI’s recent decision to walk away from the Oracle data center deal exposes deeper competitive conflicts between major chipmakers.
Chip Dispute Behind AI Infrastructure Shift
According to Burry, OpenAI opted out of the Oracle project because it preferred Nvidia’s Ruben architecture over the Blackwell configuration that Oracle had ordered. Oracle had already taken on substantial debt to secure the location and order equipment built around Blackwell chips, but OpenAI feared the technology would be outdated by the time construction finished.
Despite the dispute, Burry acknowledged that Oracle and OpenAI remain partners on other initiatives. In an X post on Monday, Oracle dismissed reports that its collaboration with OpenAI for the Abilene data center expansion had fallen through and confirmed that it is still on schedule. A Bloomberg report on Friday said Oracle and OpenAI have canceled their plans to expand the Texas data center.
Oracle stock inched 0.2% lower on Tuesday afternoon. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘high’ from ‘normal’ levels in 24 hours.
Oracle will report quarterly results after the closing bell on Tuesday. Analysts expect the company’s revenue to be $16.9 billion and its earnings per share (EPS) to be $1.7, according to Fiscal AI data.
Nvidia’s Influence
Burry claimed that Nvidia stepped in to stop Advanced Micro Devices Inc. (AMD) from winning the Oracle contract. He called the move “mafia-like” and suggested it could raise antitrust concerns given Nvidia’s power within the AI chip ecosystem.
The investor also noted that the U.S. Department of Justice has examined Nvidia’s market practices for nearly two years. However, he expressed skepticism about whether regulators will ultimately pursue enforcement action.
ORCL stock has gained 1.75% in the last 12 months.
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