Palantirs Alex Karp blasts Big Short investor Michael Burry | Latest Tech News
Palantir CEO Alex Karp blasted short sellers on Tuesday, singling out famed investor Michael Burry as “bats–t crazy” for his mixed $1.1 billion wager against his company as properly as AI chipmaker Nvidia — two companies that have seen their stock surge in the last 12 months.
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp told CNBC’s “Squawk Box” on Tuesday.
“The idea that chips and Ontology is what you want to short is bats–t crazy.”
Palantir CEO Alex Karp blasted short sellers on Tuesday, singling out famed investor Michael Burry as “bats–t crazy.” CNBC Television
“He’s actually putting a short on AI. … It was us and Nvidia,” Karp added.
Burry’s Scion Asset Management disclosed huge short positions against Palantir and Nvidia, price a mixed $1.1 billion, in a latest regulatory submitting.
The bets got here even as both corporations have led the market’s AI growth — and just hours before both shares plunged on considerations about overheated valuations.
The submitting confirmed Scion held put choices on 5 million shares of Palantir, valued at about $912 million, and another 1 million shares of Nvidia price roughly $187 million, as of Sept. 30. Put choices usually repay when a stock’s price declines.
Karp accused Burry, best identified for being featured in the hit 2015 film “The Big Short,” of attempting to manipulate markets and of concentrating on the incorrect corporations in the AI frenzy.
“With the shorts it’s very complex … honestly I think what’s going on here is market manipulation,” Karp said. “We delivered the best results anyone’s ever seen. It’s not even clear he’s not doing this to get out of his position.”
Burry’s Scion Asset Management disclosed huge short positions against Palantir and Nvidia, price a mixed $1.1 billion, in a latest regulatory submitting. WireImage
Burry — who made his mark thanks to his prescient wager against the housing market before the 2008 financial crash — declined to remark when reached by CNBC.
The outspoken investor hinted last week that markets had been frothy, writing on X: “Sometimes, we see bubbles.
Sometimes, there’s something to do about it. Sometimes, the only profitable transfer will not be to play.”
Karp, 58, mocked that warning, suggesting Burry’s skepticism of the AI growth was misplaced.
“These people, they claim to be ethical, but they are actually shorting one of the great businesses of the world,” he said.
Palantir shares tumbled about 9% Tuesday despite the company posting better-than-expected quarterly outcomes and upbeat steerage.
Nvidia slipped more than 2%.
Burry shorted 1 million shares of Nvidia price roughly $187 million. Nvidia CEO Jensen Huang is pictured. REUTERS
Both corporations have been among Wall Street’s largest gainers during the AI surge.
Nvidia, which dominates the market for chips powering artificial intelligence fashions, has climbed more than 50% this 12 months. Palantir, which provides AI software program to authorities and company purchasers, is up more than 170%.
Still, many analysts say the rally has gone too far.
FactSet data reveals Palantir entered the week trading at more than 300 occasions projected 2025 earnings.
Burry’s firm also disclosed bullish bets on Pfizer and Halliburton price a mixed $214 million. But roughly 80% of Scion’s disclosed portfolio was tied to the Nvidia and Palantir short positions, signaling a heavy conviction commerce.
Karp, who has grown more and more combative toward critics of Palantir’s hovering stock, has lashed out at short sellers before. On Tuesday, he said he was “going to be dancing around when it’s proven wrong.”
“It’s not even clear he’s shorting us,” Karp said. “It’s probably just, ‘How do I get my position out and not look like a fool?’”
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