Michael Burry isn't impressed with Meta Platforms Inc. (META)'s latest move. The legendary contrarian investor took to social media Monday to blast CEO Mark Zuckerberg's announcement of Meta Compute, a massive initiative to build hundreds of gigawatts of AI capacity.

Burry's warning was blunt: Meta is "throwing away its one saving grace." And what exactly was that saving grace? The company's identity as an asset-light software powerhouse.

"Watch ROIC crash," Burry added, referring to return on invested capital, the metric that measures how effectively a company converts investment dollars into profits.

Here's the problem as Burry sees it. Meta built an empire by generating enormous profits from code and advertising space, requiring minimal physical infrastructure relative to its earnings. The business model was beautiful in its simplicity and efficiency.

Now Meta is committing to a reported $600 billion in capital expenditures through 2028 for data centers, energy grids, and custom chips. That's not just a lot of money. It's a fundamental transformation from software company to infrastructure company.

The math here matters. ROIC is essentially profit divided by invested capital. When you suddenly explode the denominator by hundreds of billions of dollars, the efficiency of your business model takes a serious hit. Meta's money-printing machine, as Burry sees it, is about to become a lot less efficient.

In Burry's view, Zuckerberg has "given in" to the industry-wide AI arms race, trading Meta's core advantage for a high-risk, low-efficiency bet on physical infrastructure. As the market digests the enormous scale of Meta Compute, Burry stands as one of the only contrarian voices expressing serious doubt.

META Price Action: Meta stock dropped more than 2% on Tuesday, trading at $628.13.