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Michael Burrys Chart on How Elon Musk-Nvidia Deal is Putting US Retirees at Risk
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Date: June 1st, 2026 11:51 AM Author: Clear old irish cottage https://www.reddit.com/r/wallstreetbets/comments/1ttul6p/michael_burrys_chart_on_how_elon_musknvidia_deal/
This is Burry's argument that everyday retirees are unknowingly funding xAI's GPU cluster through a chain of financial intermediaries. Here's the simple version:
The chain:
You (retiree) buy what feels like a safe annuity from Athene
Athene quietly ships your premium money and $217B in assets to a Bermuda captive insurer (Athene Annuity Re) — moving the risk offshore and off their balance sheet
Apollo (who owns Athene) directs those Bermuda assets into its own private credit funds, collecting massive fees along the way
Apollo then uses that capital to raise $3.5B in debt for a company called Valor (VCI) — a special purpose vehicle
Valor buys 100,000+ NVIDIA GB200 GPUs ($5.4B worth), with Nvidia also kicking in $1.9B as an equity investor
Those GPUs get leased to xAI (Elon Musk's Grok AI), which pays all the running costs
Burry's core complaint:
Retirees think they own safe, liquid assets — but their money is actually backing illiquid, hard-to-price private credit deals (34.7% is "Level 3" — meaning no real market price exists)
Apollo earns fees at every step
The risk has been quietly moved to Bermuda, away from US insurance regulators
The whole thing is dressed up as "hallmark, downside-protected" investing
TL;DR: Grandma's annuity is funding Grok, Apollo is getting paid 6x in fees, and nobody told grandma. |
Date: June 1st, 2026 12:13 PM Author: stubborn thriller locale gaming laptop What will Burry do when SpaceX goes to the moon (figuratively)?
I don't even disagree with him in that this is all part of a gigantic jewish scam. It would probably help if he got straight to the point and said as much. |
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Date: June 1st, 2026 12:33 PM Author: Ultramarine Offensive Native Let the goyim deal in the real world. (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910044) |
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Date: June 1st, 2026 1:36 PM Author: Clear old irish cottage (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910099) |
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Date: June 1st, 2026 12:51 PM Author: Drunken theatre Buying assets to lease to the richest man in the world is about as safe as you can get on paper. Annuity buyers aren't looking for liquid assets at all nor are they concerned about how the annuity generates fixed returns. There are plenty of exchange traded products available for that.
I'm not saying that this *is* the safest possible thing. Buying AAA rated mortgage-backed securities was also considered extremely safe. But it's hard to think of a more defensibly safe investment than leasing assets to the richest man on earth. |
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Date: June 1st, 2026 1:26 PM Author: stubborn thriller locale gaming laptop Nooooooo!!! Don't you see? It's 2008 all over again!! (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910092) |
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Date: June 12th, 2026 12:27 PM Author: chilmata I think you were supposed to resort to histrionics or something. (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49933840) |
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Date: June 1st, 2026 1:46 PM Author: Exciting Smoky Field Lettuce Retirees are going to be fucked anyways when the passive investing bubble goes BOOM. (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910103) |
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Date: June 1st, 2026 2:17 PM Author: Clear old irish cottage "We're sorry you lost all your money, goy. Sign up for this CBDC and get 500 GOYIMSHEKELCOINS deposited into your SLAVE ACCOUNT monthly!" (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910130) |
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Date: June 1st, 2026 10:59 PM Author: gold flirting step-uncle's house (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910794) |
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Date: June 1st, 2026 11:18 PM Author: brass foreskin alpha How many recessions has he predicted since 2008? probably 40? (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49910805) |
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Date: June 2nd, 2026 9:35 AM Author: Exciting Smoky Field Lettuce Its been kept afloat by passive investing but will pop when boomers start withdrawing from dey 401k's (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49911026) |
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Date: June 2nd, 2026 1:24 PM Author: brass foreskin alpha Boomers are 62 to 80. Most of them are already withdrawing. (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49911228) |
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Date: June 2nd, 2026 1:30 PM Author: french domesticated liquid oxygen nibblets further, a lot of boomer money is in simple target date funds that have already shifted away from equities to fixed income and cash.
a wealthy boomer can afford to stay equity heavy because a potential recession with a 40% drop and 5 years of sideways markets means nothing for them. |
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Date: June 2nd, 2026 4:24 PM Author: Exciting Smoky Field Lettuce lolno if they are 60-40 and the 40 is in some shitty BND type crap yielding 4% they are going to have to dip into capital unless they live lean for a decade. (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49911439) |
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Date: June 2nd, 2026 4:40 PM Author: french domesticated liquid oxygen nibblets i should have clarified. i meant wealthy boomers with relatively low expenses and a desire to 1. live fairly simply 2. grow nest egg for the the next generation
e.g. 70 years old with 10M (heavy equity tilt) in retirement and brokerage with a paid off home + high social security and perhaps even a pension. who cares if the 10M drops to 6M? their withdrawal rate is 1-2% |
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Date: June 10th, 2026 7:28 PM Author: Consuela (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49928952) |
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Date: June 12th, 2026 12:24 PM Author: Consuela (http://www.autoadmit.com/thread.php?thread_id=5870424&forum_id=2",#49933833) |