After "The Big Short" went short, Trump personally endorsed Palantir.

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Palantir is at the center of a storm of fierce long-short battles. Renowned short seller Michael Burry has made a high-profile bet on the stock's decline, causing market upheaval; Trump then personally posted his support, heating up the debate on Palantir’s valuation and competitive prospects.

This week, Burry wrote on social media that AI startup Anthropic is "taking away Palantir's livelihood," and disclosed that he had built a large short position. As a result, Palantir's stock price came under pressure. Adding to the nearly one-quarter drop since the beginning of the year, concerns over its high valuation intensified.

Trump responded immediately. He wrote on social media: "Palantir Technologies has been proven to possess outstanding combat capabilities and equipment. Go ask our enemies!!! President DJT."

Boosted by this, Palantir's stock price rose as much as 5% intraday, but ultimately closed down 1.8%, failing to fully recover this week’s losses. Notably, after Trump’s post, Burry immediately released a blog article, stating he would not close his position and would stick to his bearish stance.

Short-selling Pressure: Burry Bets Palantir Will Lose to AI Upstart

Michael Burry became famous for shorting the US real estate market prior to the 2008 financial crisis, an event depicted in the film "The Big Short."

This week, he posted on social media directly pointing out that Anthropic is eating into Palantir’s market share. Although he soon deleted the post, his short position had already been disclosed.

Burry’s judgement touched a nerve in the market. Analysts and investors had previously had doubts about Palantir's high valuation, and Anthropic, valued at $380 billion and rapidly expanding its enterprise AI tool business, is seen as a direct threat to Palantir's business model.

Palantir’s share price has fallen nearly a quarter since the start of the year. Burry’s stance undoubtedly intensified the market’s pessimism. After Trump’s post, Burry reiterated his bearish view on his blog, making it clear that he will not close his short position, showing that differences between the two sides are unlikely to be bridged in the short term.

Analysts point out that Palantir's core dilemma is: its deep ties with the US government provide the company with stable revenue and political protection, but its high valuation makes it extremely sensitive to any narrative of competitive threats.

Palantir continued to win new contracts during Trump’s second term, with a clear business expansion momentum. However, the sharp stock price correction since the beginning of the year indicates that the market still has concerns about whether it can maintain its share in the commercial AI sector. Burry’s short-selling logic bets precisely on this—as AI-native companies like Anthropic accelerate their penetration into the enterprise market, Palantir’s competitive moat may be eroded.

It is worth noting that although Palantir and Anthropic cooperate in classified military projects, their competition in the commercial AI market has increasingly attracted investor attention.

Palantir's Deep Ties with the Trump Administration

Trump’s strong support was no accident—Palantir and the current administration have formed deeply intertwined interests.

According to media reports, Palantir maintains close cooperation with numerous US federal agencies from a government contract perspective. Its Maven intelligent system has been extensively integrated into the Pentagon, providing real-time data analysis support for military operations, including those related to Iran.

The company has also signed multiple new contracts worth billions of dollars with the Department of Homeland Security and Immigration and Customs Enforcement, directly participating in the Trump administration’s controversial immigration enforcement actions.

At the political relationship level, many former Palantir employees have entered government positions, and the company has hired Washington lobbyists closely linked to the White House.

CEO Alex Karp previously supported the Democratic Party, but in 2024 donated $1 million to Trump’s Maga Inc Super PAC, dined with Trump at the White House, and accompanied him on visits to Saudi Arabia.

Risk warning and disclaimerThe market has risks, investment needs caution. This article does not constitute personal investment advice, nor does it take into account specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Please invest at your own risk. ```