Michael Burry, the investor famous for predicting the 2008 financial crisis, has said that China's rapidly accelerating power-generation buildout gives it a structural edge in artificial intelligence if the industry continues relying on increasingly energy-intensive chips.



<h2>China's Power Advantage Is Growing Faster, Not Just Bigger</h2>



Burry sounded the alarm over the weekend in a series of posts on X, pointing to a chart showing China's installed electricity generation capacity has surged far beyond that of the U.S. and Europe since the early 2000s.



&#34;It is not just the total power advantage,&#34; Burry wrote. &#34;It is the slope.&#34;



Burry said the U.S. is on the wrong path if its AI strategy continues to rely on increasingly energy-intensive Nvidia Corp (NASDAQ:NVDA) chips. &#34;Power hungry Nvidia chips are not the way forward,&#34; he wrote.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>Why China will win AI in one chart. Power hungry Nvidia chips are not the way forward for the U.S. It is not just the total power advantage. It is the slope. pic.twitter.com/qNXh1e4lZj— Cassandra Unchained (@michaeljburry) December 20, 2025</blockquote>
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See Also: Nvidia Stock Dips After Oracle Snub: Larry Ellison Calls It ‘Chip Neutrality’



<h2>Nvidia's AI Roadmap Tied To Rising Energy Demand</h2>



In a follow-up post, Burry argued that Nvidia's dominant role in AI computing has locked the industry into a path of higher power consumption.



&#34;Nvidia's development roadmap is essentially a power consumption roadmap,&#34; he stated, adding that innovation has increasingly become about &#34;how to power and to cool bigger, hotter silicon.&#34;



He said efficiency improvements have failed to keep pace with the sheer growth in computing being deployed, pushing electricity needs ever higher.



<h2>US Grid Constraints Versus China's Build-At-Will Model</h2>



Burry contrasted China's infrastructure push with what he described as a decelerating U.S. transmission buildout.



&#34;U.S. transmission grid development is actually decelerating due to permitting issues, while China is building transmission at will to match power output,&#34; he said.



That mismatch, he warned, leaves U.S. companies investing heavily in an AI arms race they are &#34;structurally positioned to lose&#34; if power-hungry scaling remains the dominant strategy.



<h2>A Call For A Shift Away From Brute-Force AI Scaling</h2>



Burry said the U.S. must pivot away from brute-force approaches centered on massive data centers and instead focus on more efficient designs.



&#34;The U.S. needs to get away from bigger and bigger power-hungry chips and innovate with AI-tuned ASICs like nobody's business,&#34; he wrote.



Burry said Nvidia has a &#34;death grip&#34; on AI development in the U.S., citing its extensive investments and agreements with many major AI companies and startups.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>My post here was inexact. My post elsewhere was more complete, below. This chart shows why China will win if Nvidia's chips are the way forward. Nvidia's development roadmap is essentially a power consumption roadmap. and innovation is just figuring out how to power and to…— Cassandra Unchained (@michaeljburry) December 20, 2025</blockquote>
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<h2>Burry Raises Valuation Concerns As Nvidia's Market Cap Soars</h2>



Burry has been stirring debate by alleging that Nvidia may be employing accounting tactics to artificially boost its valuation. The company currently has a market cap of $4.40 trillion, making it the most valuable company in the world. 



In October, the Jensen Huang-led company became the first to reach the $5 trillion market cap milestone. Year-to-date, Nvidia has gained 30.86% while in the past five years the stock has risen by 1,293.30%, according to Benzinga Pro.



Nvidia posted third-quarter revenue of $57.0 billion, representing a 62% increase from a year earlier and exceeding the Street consensus estimate of $54.88 billion.



The company also reported earnings per share of $1.30, topping analysts' expectations of $1.25. The results marked Nvidia's 12th consecutive quarter of beating Wall Street estimates on both revenue and earnings, with quarterly revenue reaching a new record.



Benzinga Edge Rankings place Nvidia in the 97th percentile for growth, with further metrics available that compare its performance against peers like AMD and INTC.



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Shutterstock

NVDA

Michael Burry warns that China's rapid power infrastructure growth gives it a structural edge in AI, as Nvidia's energy-intensive chips strain the US energy grid. He criticizes the US's reliance on power-hungry Nvidia chips and calls for a shift to more efficient AI designs. Burry also raises concerns about Nvidia's valuation tactics amid its soaring market cap.

- Michael Burry highlighted that China's rapid power-generation expansion provides a competitive edge in artificial intelligence due to its reliance on energy-intensive chips.  
- He criticized the U.S. approach, emphasizing that dependence on Nvidia's energy-hungry technology locks the industry into high power consumption and inefficient strategies.  
- Burry urged for a shift toward more efficient AI designs, warning that the U.S. risks losing the AI arms race without significant changes in its power consumption and chip innovation strategies.

Michael Burry Says China Has Structural Edge In AI As Nvidia's 'Power Hungry' Chips Outpace US Energy Grid