Big Short's Michael Burry recently took aim at megacap US tech firms, including Microsoft, Meta Platforms, Oracle, Amazon and Google's parent company Alphabet, claiming that the Mag 7 companies are using extreme accounting strategies to hide the real costs of AI infrastructure buildout and related technological investments entirely.
In a post on the social media platform X, Burry said these companies are 'understating depreciation' to safeguard their bottom lines. Burry is struggling to come to terms with how these firms are maintaining the value of their AI hardware by artificially extending the 'useful life' of chips and servers, thereby keeping expenses off current income statements.
