The beauty of a Put Option instead of a Short… The perfect application of said distinction.
Linas Beliūnas
The Big Short is back: Michael Burry, the man who bet against the 2008 housing bubble, is now betting against the AI boom 😳
Here’s what just dropped in his latest SEC filing:
↳ 66% of Scion’s portfolio = Palantir puts
↳ 13.5% = Nvidia puts
That’s roughly 80% of his fund betting against the biggest names in AI 🤯
It’s not a hedge. It’s a conviction play.
And here’s where it gets wild:
He filed the report 11 days early – something he’s never done.
When Burry moves early, he’s usually trying to send a message.
What’s he seeing? 🤔
→ Valuations gone mad: Palantir trades at 700x earnings, NVIDIA at 70×.
→ Slowing cloud growth: AWS, Azure, and Google Cloud are all decelerating even as they pour $100B+ into AI data centers.
→ Circular economy vibes: Nvidia sells GPUs to Microsoft & Oracle → they fund OpenAI → which rents compute back from them.
(Feels a bit like 1999, doesn’t it?)
Burry’s bet is simple: fundamentals won’t catch up to the hype – not soon enough, anyway.
If he’s right: We’re staring at the first true AI correction, a dot-com-style cleanup that wipes 30–50% off inflated names before the real value builders emerge.
If he’s wrong: He’s once again too early, and the “AI is the new internet” narrative steamrolls on.
Either way, this marks a shift:
The man who saw 2008 coming is now calling time on the AI euphoria.
AI is here to stay, but its stock prices might not be.
