The hedge fund legend who called the 2008 US housing crisis and is the famed investor behind the “Big Short” is back in the spotlight.
This time, he is betting against two artificial intelligence giants, taking a massive bearish position against Palantir Technologies and NVIDIA.
Palantir’s stock is up 155% year-to-date.
Image source: Dietsch/Getty Images
The Burry-Palantir controversy
According to the SEC’s 13F filing from Michael Burry’s Scion Asset Management, he has placed put options on Palantir Technologies (PLTR), which sent ripples through the AI world.
Palantir’s stock price, which had surged to a 52-week high following strong Q3 earnings on Monday, November 3, 2025, fell 8% after it was revealed that Burry was effectively shorting the stock with his put options (puts increase in value as stock prices decline).
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“I think what is going on here is market manipulation,” called out Palantir CEO Alex Karp in an interview with CNBC on November 4.
Despite Palantir’s 8% drop, shares remain up 155% year-to-date.
Still, Burry’s bet led to Karp responding with an unfiltered tirade, declaring Burry’s short bet egregious and vowing to celebrate it if it were to fail.
Burry, who has long been a contrarian, is now placing one of his largest bets on companies that are changing the market course daily – Nvidia (NVDA) and Palantir.
He purchased put options covering approximately 5 million Palantir shares, valued at around $912 million in the quarter ending Sept. 30, representing 66% of his firm’s assets under management.
The defense tech firm reported $1.18 billion in revenue, up 63% year-over-year, and even raised its full-year guidance towards $4.4 billion.
He owns puts representing 1 million shares of Nvidia — his second-largest position, worth about $187 million.
Related: Fund manager sends message on latest Palantir earnings
Karp fires back at Burry
Appearing in his first interview following the company’s remarkable Q3 earnings, Karp took the opportunity to accuse short sellers of misunderstanding Palantir’s business and the broader AI economy.
“Most of the GDP growth in this country is because of AI.”
Further commenting that Burry’s position is quite unclear, “It’s probably just how do I get my position out and not look like a fool.”
Karp went on to blast what he sees as the market’s inability to distinguish substance from hype, maintaining that, “As far as I can tell, the two companies they’re shorting are the ones making all the money.”
Karp also ranted about the ethical aspects of shorting, underscoring Palantir’s role in uplifting warfighters and performing a noble task.
Analyst reacts to Palantir’s earnings
Burry’s trade is reflecting a growing market divide, with analysts bullish on Palantir as a critical infrastructure for government data systems and AI deployment. At the same time, those bearish believe this euphoria is short-term.
RBC Capital, which raised Palantir’s price target to $50 from $45 while maintaining an Underperform rating, views the results as overwhelmingly US-centric, with stagnant international performance. Cautioning investors that while profitability is strong, there is limited clarity around what normalized growth will look like after Palantir’s initial AIP (Artificial Intelligence Platform) rollouts stabilize, as reported by TheFly.
Meanwhile, Veteran analyst Stephen Guilfoyle credits Palantir’s growth to strong fundamentals, noting, “Sales are running wild as are margins. The commercial business is exploding. Cash flows are not just robust; they are enormous. The balance sheet is simply the greatest balance sheet I can remember seeing. The CEO is focused and aggressive.”