Famed “Big Short” investor Michael Burry has issued a scathing warning to Silicon Valley, alleging that tech giants are employing aggressive accounting maneuvers to mask the true costs of the AI infrastructure race.

The ‘Sinister’ Accounting Trick

Burry, in an X post, targeted a group of Big Tech companies, including Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Meta Platforms Inc. (NASDAQ:META), accusing them of “understating depreciation” to protect their bottom lines.

The crux of the allegation lies in how long these companies claim their AI hardware remains valuable. While the industry moves at breakneck speed, Burry argues companies are artificially extending the “useful life” of chips and servers to keep expenses off current income statements.

“Now you are engaging in accounting tricks to hide expense, to ...