Michael Burry, known for his prescient bet against the housing market in 2008, has criticized a $5.4 billion transaction involving Nvidia, Valor, and Elon Musk's xAI. Burry's critique, published on Substack, labels the financial engineering behind the deal as "fugazi." The transaction involves Nvidia selling over 100,000 GPUs to Valor, a special-purpose vehicle partially funded by Nvidia itself, generating $5.4 billion in revenue. Apollo arranged $3.5 billion in financing for Valor, which was securitized and sold to Athene, Apollo's insurance subsidiary. Burry highlights several risks, including round-tripped capital, concentration risk, and potential obsolescence of the GPUs. He warns that the securitized debt exposes retirees, through Athene, to AI infrastructure risks. Burry's analysis focuses on traditional private credit and AI infrastructure financing, noting the absence of crypto assets in the deal. The transaction raises questions about the quality of Nvidia's revenue and the exposure of annuity holders to single-technology risks.