The Big Short investor who called 2008 crash is betting big against AI
The Big Short investor issues warning over AI
- Michael Burry, the investor famed for predicting the 2008 housing market collapse, has warned of an artificial intelligence "bubble" after a two-year hiatus from social media.
- His fund, Scion Asset Management, disclosed it purchased puts, or bets on falling share prices, against AI giants Nvidia and Palantir, amounting to nearly $1.1 billion.
- Burry's skepticism is rooted in observations such as slowing growth in cloud computing, surging tech sector capital expenditures due to AI, and circular dealmaking among AI companies.
- Following Burry's actions, tech stocks experienced a downturn on Tuesday, with Palantir shares dropping 7.95 per cent and Nvidia falling 3.9 per cent.
- Palantir CEO Alex Karp publicly criticised Burry's move, calling the decision to short these companies "bats*** crazy" and "super triggering".