US EditionBurry Bets $1.1B Against Nvidia, Palantir in AI Short
Michael Burry placed $1.1 billion in put options against Nvidia and Palantir, reflecting concerns over an AI-driven market bubble despite their strong stock gains this year.
- On Monday, a regulatory filing showed Scion Asset Management bought put options on Nvidia and Palantir, disclosing trades added in the quarter ending September 30.
- Michael Burry returned to X with posts warning that AI enthusiasm may be a bubble, comparing AI spending and tech titans to the dot‑com bubble and writing that `Sometimes, we see bubbles`.
- Scion Asset Management's third-quarter filing lists a 5,000,000-share equivalent put on Palantir worth $912,000,000 and a 1,000,000-share equivalent put on Nvidia valued at $186,600,000.
- Palantir and Nvidia slid after the disclosure, sparking a tech sell‑off this week as Palantir Technologies shares fell 8% and Nvidia 4%, with Alex Karp, Palantir chief executive, denouncing the short position as egregious.
- With Palantir up 174% this year, debate has intensified over whether AI valuations are a bubble, as Nvidia has risen more than 13-fold, raising concerns of a correction in recent weeks.
151 Articles
151 Articles
Nvidia cracks the 5-billion mark and "Big Short" investor Michael Burry sets a billion dollars against AI giants. Experts warn of parallels to the dotcom bubble.
Michael Burry, who became famous for anticipating the 2008 subprime crisis, bet more than a billion dollars on the fall of the giants of artificial intelligence Nvidia and Palantir.
The American investor, famous for anticipating the subprime crisis in 2008, bet $1.1 billion on the fall of the shares of Nvidia and Palantir, convinced that the bubble of the AI is about to burst.
Fears of an AI bubble are fueled by investor warnings and a high-profile short sale. But AI company CEOs are counterattacking as stocks shake. “The idea is wildly crazy,” says Palantir CEO Alex Karp.
One of The Short Sellers Who Predicted The 2008 Housing Crisis Now Looks to Be Betting Against AI
Michael Burry, an investor made famous by his bets against the U.S. housing market before the 2008-2009 crash who was portrayed by Christian Bale in 2015's The Big Short, appears to have a new short target: the artificial intelligence industry.
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