Michael Burry Bets Big Against the AI Hype
So, the legendary “Big Short” investor Michael Burry is back in the headlines — and this time, he’s taking on two of the biggest names in the artificial intelligence boom: Nvidia and Palantir. Yes, the same man who predicted the 2008 housing crash is once again betting that another bubble is about to burst.
According to a new regulatory filing, Burry’s hedge fund, Scion Asset Management , has made huge bearish bets using put options — those are financial contracts that rise in value when a stock price falls. The filing revealed that Scion placed a 1 million-share equivalent put on Nvidia worth around $186.6 million , and an even bigger 5 million-share equivalent put on Palantir valued at roughly $912 million . That’s close to $1.1 billion in total bets against two companies that have been at the center of the AI frenzy this year.
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Now, let’s put that in perspective. Nvidia has been one of the biggest success stories in modern stock market history. It became the world’s first $5 trillion company by market capitalization , driven by the skyrocketing demand for AI chips and hardware. The stock has already jumped more than 50% this year alone, continuing a three-year surge fueled by investor enthusiasm. Meanwhile, Palantir , a data analytics firm deeply tied to AI and defense contracts, has soared by an astonishing 174% in 2025 .
But Burry clearly believes that what goes up must eventually come down. His bets suggest he sees signs of overheating — that perhaps the AI excitement has gone too far, too fast. And in typical Burry fashion, he didn’t stay quiet about it. Just days before this filing became public, he broke his long silence on X (formerly Twitter) with a cryptic message:
“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
That’s classic Burry — cautious, contrarian, and unafraid to stand alone when everyone else is bullish.
Interestingly, while he’s bearish on the AI giants, Burry’s portfolio also includes call options — bullish positions — on Halliburton , the oilfield services company, and Pfizer , the pharmaceutical giant. His fund also holds shares in companies like Lululemon , Molina Healthcare , Bruker , and Sallie Mae .
As of the latest quarter, Scion is holding only eight positions, down from fifteen earlier this year — a clear sign that Burry is being selective and cautious. The firm managed around $155 million in assets as of March.
All this comes as markets keep climbing to record highs, and debates intensify about whether the AI boom has inflated another market bubble . If Burry is right again, history might be repeating itself — just with different players and a digital twist.
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