Michael Burry's Anti-AI Bet: What's He Seeing That We Aren't?

Burry's Betting Against AI? More Like Betting *On* the Inevitable Crash

So, Michael Burry – the guy who called the 2008 crash – is shorting Nvidia and Palantir? Color me completely unsurprised. The dude's basically the Cassandra of Wall Street, except instead of prophecies nobody believes, he makes bank off them.

This isn't just some random hedge fund manager making a play. This is Burry. The guy who stared down the housing market and won. Now he’s looking at the AI hype train and seeing... well, another bubble. And honestly, who isn't seeing it?

The AI Hype Machine is Overheating

Let's be real: AI is the new crypto. Everyone's throwing money at it, nobody really understands it, and the promised returns are about as realistic as a unicorn riding a rocket ship. Burry's latest 13F filing shows he's put his money where his mouth is, dropping nearly a billion dollars on put options against Palantir and Nvidia. A cool $912.1 million bearish position in Palantir and $186.58 million against Nvidia, according to Whale Wisdom. That's a statement.

And his tweet? Gold. "These aren't the charts you are looking for. You can go about your business." The Star Wars reference is perfect. It's basically him telling the masses to ignore the shiny AI distractions and look at the real data. The charts he posted comparing current AI spending to the 1999-2000 tech bubble? Chilling.

But here's the thing: everyone knows it's a bubble. So why is everyone still playing along? Fear of missing out, plain and simple. Nobody wants to be the last one to the party when the music stops. It's like musical chairs, but with billions of dollars on the line.

Is It Really Different This Time? (Spoiler: No)

We always tell ourselves "it's different this time" right before the crash. "This new technology will change everything!" "The old rules don't apply anymore!" Give me a break. Human greed is a constant. And when there's easy money to be made, people will throw caution to the wind.

Burry's not just looking at the hype. He's digging into the financials. He's seeing the insane capital expenditures, the unsustainable growth projections, the web of interconnected deals between companies like Nvidia, OpenAI, and Oracle. It's all smoke and mirrors.

And the fact that Palantir's stock is at an all-time high? That's not a sign of a healthy company; that's a flashing red warning light. According to Benzinga, Burry is super-bearish on Palantir, holding 5 million puts Michael Burry Is Super-Bearish On Palantir — With 5 Million Puts - Palantir Technologies (NASDAQ:PLTR).

Offcourse, maybe I'm wrong. Maybe AI will revolutionize everything and we'll all be living in a utopian future powered by sentient algorithms. But I wouldn't bet my house on it. Or, you know, a billion dollars in put options.

The Smart Money's Hedging... Are You?

Look, I'm not saying Burry's always right. He's made bad calls before. But the guy has a track record of seeing things others miss. And when he's making this big of a bet against the AI boom, it's worth paying attention.

It's not just about shorting Nvidia or Palantir. It's about recognizing the inherent risks in the market right now. The AI hype is masking some serious underlying problems. Inflation, rising interest rates, geopolitical instability... the list goes on.

Burry is also betting on things, though. He added 50,000 shares of Lululemon Athletica, opened a 125,000 share position in Molina Healthcare, Inc. and a 480,000 share position in SLM Corp. He also purchased 2.5 million calls on Halliburton Co. and six million calls on Pfizer, Inc. So it's not all doom and gloom in his world.

Maybe it's time to take some profits, reassess your portfolio, and prepare for the inevitable correction. Or, you know, keep chasing the AI dragon. Your call.

This Smells Like 2008 All Over Again