Burrys critique is that the Nvidia funding deals have them investing money in a company and getting both stock in that company and their own money back to buy the chips. They then book the chip sales in revenue but they don’t show the investment as a cost, since investments are treated separately from an accounting perspective. So it looks like they’re growing revenue organically at no cost, while that doesn’t seem logically consistent with what’s actually happening.

The truth is you can't properly account for these transactions. If they are making legitimate equity investments (ie, that an independent investor would reasonably make) it's all fine. If they are investments that don't hold water, it's fraud.

It's not that different to any type of vendor financing. Vendor financing is legit, if done legitimately.

Burry's critique is even more general than that when it comes to tech companies doing accounting fraud. It's his argument as to why "the market doesn't make sense" and his bets have failed -- which is why I'm not sure anyone would summarize it as "betting against AI growth translating into real profits as a whole"