Burry: Nvidia xAI Deal Built on Fugazi Structure
Michael Burry labels Nvidia $5.4B GB200 sale to Valor shell as Fugazi, with xAI chips funded via Apollo debt sold to Athene annuities holding $103B Level 3 assets at 16x leverage.
SourceAnalysis
Michael Burry labeled the Nvidia and xAI arrangement Fugazi after tracing $5.4 billion in GB200 GPUs routed through Valor, a shell created solely to hold the chips off both companies' balance sheets.
Nvidia booked the full revenue while adding its own $1.9 billion investment into Valor; the 100,000-plus chips now power xAI models inside Elon Musk's data center without appearing as assets on either Nvidia or xAI ledgers.
Apollo supplied $3.5 billion in debt packaged into securities sold to its insurance arm Athene, whose $74.2 billion reserves include $217 billion moved to Bermuda and $103 billion in unpriced Level 3 assets leveraged 16 times, placing American annuity holders at the base of the structure.
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