The market is buzzing. Michael Burry, the contrarian investor immortalized in The Big Short, has just made his next enormous, high-stakes wager: a massive short against the very heart of the AI revolution.
According to his latest 13F filing, his hedge fund, Scion Asset Management, purchased put options on Palantir (PLTR) and Nvidia (NVDA) with a combined notional value of approximately $1.1 Billion.
This is not a modest hedge; it is an all-or-nothing wager on the imminent collapse of the most dominant, high-growth companies in the most disruptive technology since the internet. Burry’s reputation is rooted in calling the end of an era, but his current bet is a nostalgic play on past success, ignoring the exponential reality of today’s tech leaders.
The “Big Short” thesis assumes a bubble built on hot air. Our reality check is rooted in hard numbers. The figures show acceleration, not inflation. The core of our bullish argument is Palantir’s exceptional financial health.
Palantir just booked $1.18 Billion in sales for Q3 2025 alone. This revenue exceeds its total annual sales from all of 2020 ($1.09 Billion). This is not linear growth; this is the compounding power of disruptive technology. Furthermore, the company projects $1.9 Billion to $2.1 Billion in full-year Adjusted Free Cash Flow. You do not generate multi-billion-dollar FCF from a “fraud” or a “fad.” This is the sign of a durable, highly profitable business that is already converting its dominance into cash.
Burry is also betting against Nvidia, the infrastructural backbone of the entire AI economy. Shorting Nvidia is a wager against the continued progress of global technology itself. Nvidia’s AI clusters are non-negotiable, foundational infrastructure for major corporate and governmental initiatives globally. Moreover, the fundamental need for accelerated computing power shows no sign of saturation. Any argument that suggests otherwise is a bet on an unexpected halt to global technological development in the commercial and defense sectors.
Given that Scion has approximately $155 million in discretionary assets under management, a $1.1 billion bet against AI is the ultimate all-in move.
However, we find the timing of his 13F filing, 11 days ahead of the typical deadline, and immediately following Palantir’s blowout Q3 earnings report, highly peculiar. The disclosure suggests a possible strategic move to maximize media visibility and influence bearish market sentiment. This is less a pure valuation call and more a high-stakes, leveraged attempt to manufacture a market event.
Short sellers, by nature, are betting against success. But in the age of AI, where market-leading excellence creates exponential growth, this speculation is a fool’s errand. They are measuring a rocket with a ruler. Michael Burry’s fame is rooted in imperfectly calling the end of a previous era. He is now mistakenly predicting the rapid demise of an era that is only beginning. The AI wave is not crashing; by all accounts, it is gaining velocity.
Our investment strategy remains clear: we will not be guided by the legacy predictions of a single high-profile bear. We believe the AI sector is in the blast off stage. Our conviction is anchored in the verifiable financial acceleration, the superior FCF generation, and the unassailable infrastructural dominance of Palantir and Nvidia. Investors should ignore the headline risk and remain focused on capturing the long-term, exponential growth.