The 'Big Short' Guy Just Bet $1.1 Billion Against AI Giants

Michael Burry, famed for his prediction of the 2008 housing crisis, has disclosed a substantial $1.1 billion short position against Nvidia and Palantir Technologies, asserting that AI stocks are in bubble territory. This move has triggered a significant sell-off in tech markets, notably causing Palantir's shares to decline by up to 16%, despite positive earnings reports. Nvidia also experienced a drop of around 2% to 4% amidst wider market volatility, with similar declines seen across Asian and European markets as investor sentiment turned cautious. Burry's position involved substantial put options, which accounted for 80% of his fund's portfolio as of September 30. His bearish stance coincided with warnings from major Wall Street executives about potential market corrections, cementing fears over high tech valuations. Palantir's CEO criticized Burry's assessment as 'batshit crazy,' dismissing his arguments while expressing a commitment to improving company performance to counter the negative sentiment. Burry indicated that these developments could symbolize bubble-like behavior in investment strategies within the AI sector, further heightening investor caution in a rapidly changing market landscape.

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