Palantir CEO Alex Karp Labels Michael Burry's $1.1 Billion Short Bets Against AI Giants as 'Bats--- Crazy'

Palantir Technologies CEO Alex Karp publicly criticized "Big Short" investor Michael Burry, calling his substantial short positions against Palantir and Nvidia "bats--- crazy." Karp's remarks came during a CNBC "Squawk Box" interview following regulatory filings that revealed Burry's hedge fund, Scion Asset Management, held significant put options against the two artificial intelligence powerhouses.

As of September 30, Scion Asset Management disclosed put options valued at approximately $187 million against Nvidia and roughly $912 million against Palantir. These bearish bets, totaling over $1.1 billion, were made by Burry, who gained fame for accurately predicting the 2008 housing market collapse. Karp challenged the rationale behind these wagers, stating, "The idea that chips and ontology is what you want to short is bats--- crazy."

Karp emphasized that Palantir and Nvidia are leading innovators in the AI sector, questioning the logic of betting against companies "making all the money" in the current technological landscape. He further speculated about Burry's motives, suggesting it might be a strategy to "get my position out and not look like a fool." Despite Palantir reporting strong third-quarter earnings and positive guidance, its stock, along with Nvidia's, saw a dip following the disclosure of Burry's positions.

The market's reaction highlights ongoing debates about AI sector valuations, with Palantir trading at a high forward earnings multiple. Burry has previously warned about potential market bubbles, referencing a cryptic post on X about AI capex matching the 1999-2000 tech bubble. However, Karp staunchly defended Palantir's "authentic and substantive growth," asserting that "the strong companies are going to get much stronger."