Legendary investor Michael Burry, famous for his “Big Short” bet against the 2008 housing bubble, has sparked a firestorm in the semiconductor industry. On March 10, 2026, Burry publicly accused NVIDIA of engaging in “mafia-like” anti-competitive behavior by allegedly paying $150 million to block rival AMD from securing a massive data center contract with Oracle.
The Stargate Shake-up
The controversy centers on the Abilene, Texas data center expansion—part of the ambitious Stargate infrastructure project. According to Burry and recent industry reports:
- The Pivot: Oracle had borrowed heavily to build a 1.2-gigawatt facility optimized for NVIDIA’s Blackwell chips. However, OpenAI (the primary customer) reportedly balked, demanding NVIDIA’s next-generation Vera Rubin architecture instead, fearing the Blackwell setup would be “outdated before the building is even ready.”
- The Intervention: As negotiations between Oracle and OpenAI stalled, a window opened for AMD to step in with its Instinct MI450 accelerators.
- The Allegation: Burry claims NVIDIA intervened by paying a $150 million deposit to the site developer (Crusoe Energy Systems) to ensure the facility remained an NVIDIA-exclusive site, effectively courting Meta to take over the capacity that OpenAI abandoned.
“Mafia-Like” Tactics?
Burry did not mince words in his social media posts, suggesting that this move is a classic example of a dominant player using its balance sheet to stifle competition.
“This is how NVDA throws its weight around to block AMD use by its customers. It is mafia-like and should be an antitrust case,” Burry wrote.
Regulatory Clouds and Market Context
The timing of these allegations is particularly sensitive for NVIDIA:
- DOJ Scrutiny: The U.S. Department of Justice has reportedly been investigating NVIDIA’s business practices for nearly two years. While subpoenas were issued in late 2025, Burry expressed skepticism that the current Trump administration would pursue a formal prosecution.
- The Meta Factor: Interestingly, while this alleged “blocking” occurred in Texas, Meta recently signed a separate 6-gigawatt deal with AMD to diversify its own hardware supply, suggesting that NVIDIA’s influence, while massive, is not absolute.
- Valuation Stakes: With NVIDIA’s market cap hovering near $5 trillion, any credible threat of antitrust action or evidence of exclusionary rebates could trigger significant market volatility.
Company Responses
Neither NVIDIA nor Oracle has officially responded to Burry’s specific $150 million figure. Oracle, however, maintained in a recent statement that its partnership with OpenAI remains “on track” and that they are aggressively building out capacity to meet demand for both NVIDIA and AMD hardware across their global cloud regions.
