Michael Burry Bets $1B Against AI Giants: History Repeating?

TLDR

• Michael Burry has placed a $1 billion short position against Nvidia and Palantir through Scion Asset Management.
• The short position includes $912 million against Palantir shares and $187 million against Nvidia stock.
• Nvidia shares fell over 2% in pre-market trading, while Palantir stock dropped more than 8% after the disclosure.
• Michael Burry returned to social media after a two-year hiatus to post a cryptic warning about market bubbles.
• The investor shared charts comparing current U.S. technology spending growth to the levels of the late-1990s tech bubble.

Michael Burry has placed a $1 billion short position against leading artificial intelligence stocks. The investor targets Nvidia and Palantir through his firm, Scion Asset Management. Both stocks dropped after the disclosure became public.

Michael Burry Takes Billion-Dollar Short Position

Scion Asset Management filed new put contracts worth approximately $1.1 billion against AI stocks. The firm bet $912 million against Palantir shares and $187 million against Nvidia stock. Quiver Quantitative revealed these positions through recent filings with the SEC.

Nvidia shares fell over 2% in pre-market trading following the news. Palantir stock dropped more than 8% on the same day. The market reacted quickly to Michael Burry’s bearish stance on these companies.

Both companies lead the current AI rally, dominating global markets in 2025. Nvidia’s market capitalization recently surpassed $5 trillion, making history as the first publicly traded company to achieve this milestone. Palantir’s shares surged more than 400% in the past year as demand for AI analytics increased.

Michael Burry returned to social media platform X last week after a two-year absence. He posted a photo of Christian Bale, who portrayed him in The Big Short. The caption read, “Sometimes, we see bubbles. Sometimes, there is something to do about it.”

Warnings About Technology Spending Growth

Michael Burry shared charts showing U.S. technology spending growth reaching late-1990s levels. The data compared current trends to the tech bubble that preceded the dot-com crash. He highlighted information indicating a slowdown in cloud computing demand among major firms.

The investor gained fame for predicting the U.S. housing crash before the 2008 financial crisis. Michael Burry made billions when the market collapsed as he had anticipated. His track record includes making contrarian trades when valuations appear excessive.

Scion’s latest SEC filing confirms the short exposure against AI stocks. Michael Burry follows his pattern of betting against market frenzies he considers unsustainable. The move has reignited concerns about a potential AI bubble forming in markets.

The AI investment boom has lifted valuations across the entire technology sector. Nvidia became more valuable than Germany’s entire economy after crossing the $5 trillion threshold. The company remains a central player in the ongoing artificial intelligence revolution.

Market Impact and Trading Activity

Palantir’s rapid share price increase reflects strong demand for AI-driven analytics solutions. The company benefits from growing enterprise adoption of artificial intelligence technologies. Trading activity intensified after Michael Burry’s position became public knowledge.

Google recently partnered with Coinbase to launch an AI payments protocol. This partnership demonstrates how the traditional tech and crypto sectors are merging around artificial intelligence. Tech alliances continue expanding despite concerns about market valuations.

Pi Coin announced new AI investments that generated optimistic price projections. Crypto projects related to artificial intelligence have experienced positive momentum alongside tech stocks. The sector attracts attention from both traditional and digital asset investors.

Michael Burry’s contrarian bet is positioned against prevailing market sentiment, which favors AI stocks. His firm now holds substantial short positions in two leading AI companies. The disclosure came through mandatory regulatory filings with the Securities and Exchange Commission.

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