Palantir CEO lashes out at "Big Short": Shorting Nvidia and Palantir is "simply crazy"
Palantir CEO Alex Karp publicly criticized “The Big Short” prototype investor Michael Burry for shorting his company and Nvidia, calling Burry’s opposition to leading AI companies “completely crazy.”
According to a Wallstreetcn article, Michael Burry’s Scion Fund has concentrated about 80% of its positions on shorting Nvidia and Palantir, with a nominal value of over $1 billion.
Last week, Burry hinted at concerns about the market on social media, posting: “Sometimes we see bubbles, sometimes we can take action, sometimes the only winning move is not to play.” He became famous for successfully shorting mortgage-backed securities ahead of the 2008 financial crisis, a trade portrayed in the Oscar-winning movie “The Big Short.” Burry himself declined to comment on Karp’s remarks.
Executive Directly Points to Market Manipulation
Karp was outspoken in his criticism of short sellers, stating:
“He actually chose to short two companies with such outstanding performance, which is very strange in itself. Trying to short chips and ontology (referring to the core AI sector) is simply mad.”
He believes Burry is essentially “shorting AI,” and targeted the entirety of short-selling behavior. Karp claimed that market manipulation is occurring:
“Short selling is very complicated—honestly, I think market manipulation is happening here. We delivered the best results in history. I even suspect he is using public opinion to cover his own position closing. These people appear to tout morality, but in reality they are shorting the world’s most innovative companies; this is extremely hypocritical.”
Karp also commented:
“It’s not even clear if he really is shorting us. Maybe it’s just ‘how do I exit my position without looking like a fool?’ I do think this conduct is egregious, and when it’s proven wrong I’ll be cheering.”
Palantir’s third-quarter results were strong but its stock still fell, reflecting rising investor worries about AI-related stock valuations. The company’s forward P/E ratio is as high as 228, far above market averages. As of press time, Palantir is at $193.21 per share, up 157% so far this year.
Regulatory filings show that as of September 30, Burry held put options on Palantir with a nominal value of $912 million, and on Nvidia for $187 million. However, the filings do not specify strike prices or expirations.
It is currently unclear whether Burry profited from Tuesday’s stock drop. The document reflects holdings as of the end of September, and he may have since adjusted his portfolio. Burry declined to comment on his current holdings.
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