Palantir CEO Alex Karp ranted against short-sellers, calling out specifically Michael Burry after a filing revealed the investor of “The Big Short” fame had bets against the AI software company, as well as Nvidia, at the end of the last quarter.
“The two companies he’s shorting are the ones making all the money, which is super weird,” Karp told CNBC’s “Squawk Box.” “The idea that chips and ontology is what you want to short is bats— crazy.”
“He’s actually putting a short on AI… It was us and Nvidia,” Karp added.
Palantir shares slid roughly 9% Tuesday even after the software company beat Wall Street estimates for the third quarter and offered upbeat guidance. Investors have grown increasingly wary of lofty valuations in AI-linked names. Palantir shares, which were up 173% for the year heading into Tuesday’s trading, have a forward price-earnings ratio of 228. Nvidia fell more than 2% after gaining more than 50% this year.
“I do think this behavior is egregious and I’m going to be dancing around when it’s proven wrong,” said Karp of short-sellers.
Burry’s hedge fund Scion Asset Management disclosed put options with a notional value of about $187 million against Nvidia and $912 million against Palantir as of Sept. 30. in a filing. The filing didn’t specify the strike prices or expiration dates of the contracts.
It’s unclear whether Burry is profiting from Tuesday’s declines. The filing reflects his positions at the end of September, and he may have since adjusted his portfolio by now.
“It’s not even clear he’s shorting us. It’s probably just, ‘How do I get my position out and not look like a fool?'” Karp said.
The disclosure comes after Burry hinted at renewed caution in markets in a cryptic post on X last week.
“Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play,” he wrote to his 1.3 million followers on the platform.
Burry gained fame for his prescient bet against mortgage-backed securities before the 2008 financial crisis, a trade chronicled in Michael Lewis’ The Big Short and the Oscar-winning film of the same name.
“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. I mean these people, they claim to be ethical, but they are actually shorting one of the great businesses of the world.”
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