Palantir CEO Alex Karp blasted short sellers on Tuesday, singling out famed investor Michael Burry as “bats–t crazy” for his combined $1.1 billion bet against his company as well as AI chipmaker Nvidia — two firms 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.”
“He’s actually putting a short on AI. … It was us and Nvidia,” Karp added.
Burry’s Scion Asset Management disclosed massive short positions against Palantir and Nvidia, worth a combined $1.1 billion, in a recent regulatory filing.
The bets came even as both companies have led the market’s AI boom — and just hours before both stocks plunged on concerns about overheated valuations.
The filing showed Scion held put options on 5 million shares of Palantir, valued at about $912 million, and another 1 million shares of Nvidia worth roughly $187 million, as of Sept. 30. Put options typically pay off when a stock’s price declines.
Karp accused Burry, best known for being featured in the hit 2015 movie “The Big Short,” of trying to manipulate markets and of targeting the wrong companies 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 — who made his mark thanks to his prescient bet against the housing market before the 2008 financial crash — declined to comment when reached by CNBC.
The outspoken investor hinted last week that markets were frothy, writing on X: “Sometimes, we see bubbles.
Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
Karp, 58, mocked that caution, suggesting Burry’s skepticism of the AI boom 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 results and upbeat guidance.
Nvidia slipped more than 2%.
Both companies have been among Wall Street’s biggest gainers during the AI surge.
Nvidia, which dominates the market for chips powering artificial intelligence models, has climbed more than 50% this year. Palantir, which supplies AI software to government and corporate clients, is up more than 170%.
Still, many analysts say the rally has gone too far.
FactSet data shows Palantir entered the week trading at more than 300 times projected 2025 earnings.
Burry’s firm also disclosed bullish bets on Pfizer and Halliburton worth a combined $214 million. But roughly 80% of Scion’s disclosed portfolio was tied to the Nvidia and Palantir short positions, signaling a heavy conviction trade.
Karp, who has grown increasingly combative toward critics of Palantir’s soaring 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?’”
Credit: Source link
