When Michael Burry revealed a massive bet against Palantir, it was more than just another hedge-fund move it ignited a clash that spilled into public view. Palantir’s CEO Alex Karp responded with scathing criticism of Burry’s shorts. Then Burry hit back. What started as financial disclosure became a power play over narrative, AI boom, and who gets to call the market’s direction.
A recent regulatory filing by Burry’s firm, Scion Asset Management, revealed put options against about 5 million shares of Palantir valued around $912 million as of September 30. In the same filing, the firm showed similar bearish bets against Nvidia.
Shortly after that filing, Palantir’s stock dropped roughly 8 % in one session even though its third-quarter results were strong: revenue up 63 % year-over-year to around $1.2 billion.
In a televised interview on CNBC, Alex Karp didn’t mince words: he called the moves by Burry “batshit crazy” and “egregious,” arguing that betting against Palantir and Nvidia during the AI boom made no sense.
Burry jumped in via X (the platform formerly known as Twitter) and publicly mocked Karp’s ability to interpret a “simple 13F” filing. He wrote:
“Doesn’t surprise me one bit that Alex Karp and his ‘ontology’ @PalantirTech cannot crack a simple 13F. A fundamental principle of any rigorous ontological/epistemological model … is recognizing when your information set is insufficient for valid conclusions.”
He also hinted that his disclosed position might not reflect his current stance suggesting he may have already exited or altered his bet.
Valuation vs. fundamentals – Palantir represents the high-stakes end of the AI and data analytics boom. With high growth and lofty expectations, bets against it become statements about the broader tech market, not just one stock.
Narrative control – Karp wants the market to see Palantir as indispensable, especially in government and commercial intelligence. Burry, with his contrarian reputation, is calling out what he sees as inflated expectations and risk of a bubble.
Psychological ripple – The name “Michael Burry” carries weight. When he steps into a bet like this, market watchers pay attention. The public sparring raises questions about why such bets are made and what the real view of the AI sector is.
| Person | Role | Position Taken | Public Comment |
|---|---|---|---|
| Michael Burry | Investor (Scion Asset) | Put options on ~5M Palantir shares (~$912M) | Mocked Karp on X for “not reading 13F” |
| Alex Karp | CEO, Palantir | Defended Palantir’s AI future & business | Called the short “batshit crazy” |
| Palantir | Company | Strong Q3 results (63% revenue growth) | Focused on AI/data markets |
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Earnings and guidance. Can Palantir continue high growth? Will markets reward it or focus on the high valuation?
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Short position updates. If Burry exits, how does that shift sentiment? If he holds, what’s his reasoning?
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Broader AI sector reaction. This isn’t just Palantir it’s about the health of tech bets in general.
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Media and narrative battles. Public back-and-forth between companies and investors can drive sentiment faster than fundamentals sometimes.
This is more than a spat it's a moment where an investor-icon clashes with one of tech’s louder voices. Michael Burry is challenging the AI hype with massive bets; Alex Karp is defending one of its poster-children. Whether Palantir soars or stumbles next, this duel already highlights how much money, narrative and credibility are intertwined in today’s investing world.
