Michael Burry has made a huge bet against the current boom experienced by artificial intelligence stocks. The famous investor who was featured in the movie, The Big Short, has taken a $1 billion short position on Nvidia and Palantir stocks. This has reignited concerns that the AI market could be on the edge of a bubble.
Burry’s $1.1 Billion Shorts Echoes AI Skepticism
A chart by Quiver Quantitative showed that Burry’s investment firm, Scion Asset Management, revealed new put contracts valued at about $1.1 billion. The positions include $912 million against Palantir shares and $187 million against Nvidia stock.
Scion Asset’s latest filing shows Burry’s massive bearish bets on Nvidia and Palantir.Both companies are considered the main players in the AI rally that has dominated global markets in 2025. Such positives are also happening in crypto projects related to AI. As an example, the latest AI investment announcement by Pi Coin has caused optimistic price projections.
Following the disclosure, Nvidia’s shares slipped by over 2% in pre-market trading, while Palantir’s stock fell more than 8%, according to TradingView. The revelation highlights Burry’s long history of betting against market frenzy.
He predicted the U.S. housing crash prior to the 2008 financial crisis and made billions as they crashed. This also echoes the speculative mood that fueled the dot-com crash two decades ago.
Michael Burry’s Posts and Filings Reignite AI Bubble Fears
Burry returned to social media platform X last week for the first time since 2023 to issue a subtle warning. He shared a photo of actor Christian Bale, who portrayed him in The Big Short. Then, he accompanied it with the caption, “Sometimes, we see bubbles. Sometimes, there is something to do about it.”
In a separate post, Michael Burry published charts showing that U.S. technology spending growth has reached levels last seen during the late-1990s tech bubble. He also highlighted data pointing to slowing cloud computing demand among major firms.
Still, mainstream tech alliances are spreading at a great pace throughout the AI world. Google’s partnership with Coinbase to launch an AI payments protocol shows how traditional and crypto sectors are merging around artificial intelligence.
According to analysis from Quiver Quantitative, Scion’s latest SEC filing confirms the short exposure. Burry’s actions fit his pattern of making bold, contrarian trades when valuations appear unsustainable.
AI Boom Propels Nvidia’s Market Cap Beyond $5 Trillion
The AI investment frenzy has lifted stock valuations across the tech sector. Recently, Nvidia’s market capitalization surpassed $5 trillion. Hence, it became the first public company in history to surpass this milestone.
This made it more valuable than the entire German economy. In addition, Palantir’s shares have surged by over 400% in the last year as investor demand for AI-driven analytics reached record highs.
Stock prices of Nvidia and Palantir this year. Source: BloombergSource: https://coingape.com/michael-burry-bets-against-ai-stock-giants-nvidia-palantir/
