Michael Burry is back with two bets against Nvidia and Palantir (www.cnn.com)

Michael Burry’s Scion Asset Management has taken large bearish option positions against two poster children of the AI rally, buying roughly $187.6 million in puts on Nvidia (NVDA) and $912 million in puts on Palantir (PLTR), according to Q3 SEC filings. Puts are options that profit if the share price falls; these disclosures followed Burry’s rare social-post quip, “Sometimes, we see bubbles,” and coincided with a sharp market wobble (Nasdaq -2.04%, S&P 500 -1.17%). Nvidia slid about 4% (still +48% YTD) and Palantir plunged nearly 8% despite a strong earnings beat (PLTR is up ~152% this year), illustrating how sentiment can overwhelm fundamentals. For the AI/ML community this is significant as it highlights growing skepticism that current valuations and capital flows reflect sustainable, long-term AI economics rather than speculative froth. Burry’s trades underscore concentration risk (indices increasingly driven by a few mega-cap tech names), the potential for rapid derisking via options or short positions, and concerns over circular financing and inflated deal ecosystems among AI players. Even profitable, high-growth companies can see outsized volatility when narratives shift, which matters for startup funding, research commercialization timelines and how practitioners think about model-driven product economics versus market-driven hype cycles.