- Burry expanded his AI short across Palantir, Nvidia, Oracle, SOXX, and QQQ into 2027.
- Scion’s Q3 filing showed $912.1M in Palantir puts and $186.6M in Nvidia puts.
- OpenAI, Anthropic, and SpaceX IPO plans could test trillion-dollar AI valuations.
Michael Burry, the investor known for predicting the 2008 housing-market collapse, has expanded his bearish bet against artificial intelligence-linked stocks. His latest move has placed one of Wall Street’s strongest growth narratives under fresh pressure.
According to a post on X, Burry sold his entire GameStop position and opened an outright short position on Palantir Technologies. He also disclosed bearish put options tied to Nvidia, Oracle, the iShares Semiconductor ETF, and the Invesco QQQ Trust, with expiries stretching into 2027.
Burry’s AI Short Moves Beyond Valuation
The latest disclosure builds on Scion Asset Management’s final Q3 2025 13F filing. That filing showed major put positions against Palantir and Nvidia as of September 30, 2025. Data compiled from the filing showed Scion held about $912.1 million in notional Palantir puts.
It also held roughly $186.6 million in Nvidia puts. The filing listed eight holdings with a total reported value of about $1.38 billion. However, Michael Burry’s newest comments suggest the trade is no longer limited to high valuations.
On Palantir, he reportedly argued that the company is worth only “low double digits at best,” around $46 to $50 per share. He also said he is shorting the business model itself, not only the valuation.
That marks a sharper challenge to one of the most visible AI software names in public markets. Initially, Palantir has benefited from the growing demand for artificial intelligence software across government and commercial clients.
Similarly, NVIDIA remains central to the AI infrastructure trade as its chips power much of the industry’s model training and deployment. The short positions, therefore, target two major pillars of the AI market. One represents enterprise software adoption, while the other represents computing infrastructure.
AI Boom Faces Its Public-Market Test
Michael Burry’s broader concern appears focused on whether investor expectations have moved too far ahead of financial results. His comparison to the dot-com bubble reflects a familiar market warning.
The late-1990s internet boom showed that major technology shifts can still produce overvalued companies. In that period, capital entered the sector quickly before many firms had durable earnings.
That historical comparison is becoming more relevant as private technology giants prepare for public-market scrutiny. OpenAI, for instance, has been laying the groundwork for a potential IPO at a valuation of up to $1 trillion.
The timing could stretch from late 2026 into 2027. The company’s valuation has already drawn investor questions as it expands deeper into enterprise artificial intelligence. Anthropic is also moving closer to the public markets. In December, the company was preparing for a possible IPO as early as 2026.
More recent reports said Anthropic has been weighing fundraising that could value it near $1 trillion. That potential valuation is supported by expanding computing needs and enterprise AI demand.
SpaceX adds another major test to the market pipeline. The company filed confidential IPO paperwork and was targeting a valuation above $1.75 trillion. Later reports placed the possible valuation above $2 trillion. A listing at that size would rank among the largest IPOs in market history.
2026 IPO Wave May Shape the Bubble Debate
The next phase of the AI debate may be decided outside Palantir and Nvidia. The 2026 IPO wave could show how much public investors are willing to pay for future growth. If OpenAI, Anthropic, and SpaceX list at large valuations and trade strongly, public markets would signal continued confidence in the technology cycle.
However, if demand weakens, Burry’s warning would gain more weight. Still, Michael Burry’s record does not guarantee the outcome. His 2008 housing-market call became famous because it was early, contrarian, and ultimately correct.
However, early bearish trades can face heavy pressure when markets continue rising. During the dot-com era, some investors identified excess but still lost money by moving too soon.
For now, Michael Burry has become one of the most prominent voices challenging the AI rally. His expanded short positions turn the 2026 IPO pipeline into a major test of market confidence, valuation discipline, and the durability of the AI boom.
Related: Strategy Says It May Sell Bitcoin to Fund Dividends
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
