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This article first appeared on GuruFocus.

Nvidia (NASDAQ:NVDA) just got a loud new critic, and it happens to be one of Wall Street’s most famous bears. Michael Burry (Trades, Portfolio), the investor made famous by The Big Short, is once again sounding the alarm, this time about the AI frenzy and Nvidia’s place at the center of it. The stock is up more than 1,000% over the past 3 years and recently crossed a $4 trillion market value, but Burry says the excitement has started to run ahead of reality.

He’s not just talking. Recent filings show Burry has taken big put positions against Nvidia and Palantir, betting at least some of the hype unwinds. He’s also questioned how companies are accounting for expensive AI chips, arguing that longer depreciation schedules could be making financial results look better than they really are. In his view, some AI demand may be fueled more by investor cash than by real customers.

The debate spilled into public view when Palantir CEO Alex Karp called Burry’s concerns crazy, prompting a sharp reply. when a high-profile short seller speaks up, it can change how investors think. rally continues, but the AI debate is only getting louder.