Key facts
- Michael Burry believes Etched poses serious competition to Nvidia.
- Etched has reportedly recruited approximately 15% of its staff from Nvidia.
- Etched's AI chips achieved inference workload operation in 44 days.
- Etched secured $700 million in funding, reaching a $21 billion valuation.
- Burry suggests Etched's rapid progress signals potential disruption in the AI market.
Michael Burry, the investor famous for 'The Big Short,' has identified Etched, an AI startup, as a significant competitor to Nvidia. In a recent Substack post, Burry highlighted Etched's rapid development and recruitment of top talent from Nvidia as indicators of potential disruption in the artificial intelligence sector.
Etched has reportedly hired individuals who previously worked at Nvidia, making up about 15% of its workforce. The startup also claims to have its AI chips running inference workloads in just 44 days, a process that typically takes six months or longer. This efficiency and speed have led Burry to believe that disruption is on the horizon for the AI trade.
Etched recently secured a $700 million funding round, which reportedly values the company at $21 billion. Burry, a known skeptic of the AI rally, has frequently criticized Nvidia and has placed bets against companies in the AI sector, viewing the current market as a bubble poised for a significant correction.