Palantir CEO Alex Karp criticized investor Michael Burry on Tuesday. Karp called Burry’s $1.1 billion bet against Palantir and Nvidia ‚crazy.‘ The two companies have led the AI boom over the past year.
Karp Challenges Burry’s Strategy
According to the New York Post, Karp spoke with CNBC’s Squawk Box about the short positions. He questioned why Burry would target two profitable AI companies. Burry’s Scion Asset Management disclosed the positions in a recent filing.
The filing showed put options on 5 million Palantir shares worth $912 million. Burry also holds options on 1 million Nvidia shares valued at $187 million. The positions were recorded as of September 30.
Karp suggested Burry might be manipulating markets. He said Palantir delivered strong results. He also questioned whether Burry wanted to exit his position without looking foolish.
Stock Performance and Analyst Views
Both companies have seen major gains this year. Nvidia rose more than 50 percent in 2025. Palantir climbed over 170 percent. But both stocks fell on Tuesday despite strong earnings reports.
Palantir shares dropped about 9 percent. Nvidia fell more than 2 percent. Many analysts warn the rally has gone too far. FactSet data shows Palantir traded at more than 300 times projected 2025 earnings.
Burry’s Track Record and Other Bets
Burry gained fame for predicting the 2008 housing crash. His story appeared in the 2015 movie ‚The Big Short.‘ He declined to comment when contacted by CNBC about Karp’s remarks.
Burry hinted at market concerns last week on X. He wrote that sometimes bubbles appear. Sometimes the best move is not to play. His firm also made bullish bets on Pfizer and Halliburton worth $214 million combined.
But 80 percent of Scion’s disclosed portfolio ties to the Nvidia and Palantir shorts. This signals strong conviction in the trade. Karp said he will dance when the short bets prove wrong. He has fought critics of Palantir’s rising stock before. The CEO remains confident in his company’s AI software business. Palantir serves government and corporate clients with data analytics tools.
