The Heretic’s Guide to AI’s Stars Part III: Tracepalooza & the Bezzle
Michael Burry
· Cassandra Unchained
· May 22, 2026 at 19:13
· ⏱ 1 min read
| Read on Substack ↗
Summary
The article argues that NVIDIA's current demand is distorted by a temporary AI training and benchmarking phase, creating a bullwhip effect in its supply chain and downstream data-center financing. It highlights extreme customer concentration as a key risk and introduces the concept of the 'bezzle' — an unseen fraud that disappears once revealed. No explicit trading positions, actionable recommendations, or watchlist ideas are disclosed.
•NVIDIA's demand is concentrated among a few buyers whose own demand is inflated by a non-lasting training phase.
•This distorted demand creates a bullwhip into NVIDIA's supply chain through custom supply commitments and downstream data-center financing.
•Customer concentration is extremely high and noteworthy.
•The 'bezzle' — a hidden fraud or misallocation — looms over the entire setup and is central to the author's thesis.