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Michael Burry’s $1.1 Billion Bet Against Nvidia and Palantir Rattles AI Stocks

The quarterly filing revealing massive puts amplified AI valuation fears, prompting a public rebuke from Palantir’s Alex Karp.

Overview

  • Scion Asset Management disclosed puts valued at about $187.6 million on Nvidia and $912 million on Palantir as of Sept. 30, per SEC filings.
  • Palantir fell roughly 8% and Nvidia about 4% on Tuesday as the Nasdaq slid 2% and the S&P 500 dropped 1.2%, with selling spilling into global tech shares.
  • Alex Karp criticized the short positions on CNBC, calling the idea of betting against chips and Palantir’s software “batsh-t crazy” and saying shorts are trying to undercut the AI rollout.
  • An earlier Scion filing had said puts may hedge other holdings, but that language is absent from the latest report, leaving Burry’s intent—hedge or directional—unclear.
  • Markets steadied on Wednesday with a modest rebound in major U.S. indexes and a slight Nvidia bounce, even as Palantir lagged and bank CEOs warned of a potential 10%–20% equity drawdown.