Short Seller Doubles Down on Data Center Bet
Jim Chanos, a prominent short seller, is doubling down on his bet against legacy and modern data centers, arguing that their low margins, high capital costs, and rapid GPU depreciation make them poor investments, especially as profits from AI are expected to flow from chip production rather than data center infrastructure. He warns of a potential market contraction similar to the dot-com bust and highlights risks such as unprofitable AI companies and high debt levels among hyperscalers.