Micheal Burry who was played by Hollywood actor Christian Bale in the “Big Short” to bet against the US housing market as now placed a wager on the collapse of Artificial Intelligence (AI).
Burry has placed a $1.1 billion wager that shares in Nvidia and Palantir will fall, this has now raised fears that the AI bubble will burst.
In the film Big Short Burry predicted the collapse of the US housing market of mortgage-backed securities otherwise known as the MBS market, in 2007 the bubble burst leading to a global financial crisis.
Last week Burry warned over the possibility of the bubble bursting, posting a picture of Christian Bale he wrote the caption, “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
On Monday Burry posted a chart titled, “US tech capex [capital expenditure] growth is matching the tech bubble of 1999-2000.”
He posted another chart showing how growth in the demand for cloud computing at tech businesses is now slowing down.
Burry’s investment firm, Scion Asset Management has bought “put” contracts $187 million of shares in Nvidia and $912 million in Palantir.
Sometimes, we see bubbles.
Sometimes, there is something to do about it.
Sometimes, the only winning move is not to play. pic.twitter.com/xNBSvjGgvs— Cassandra Unchained (@michaeljburry) October 31, 2025
The puts will allow Scion to sell the stock at a specified price within a time period, this enables investors to profit from share price falls, as the stock is purchased during the dip, to then sell at a higher price.
James Kardatzke, Quiver Quantitative co-founder, said, “Michael Burry has a history of making large bearish bets when he perceives there to be a bubble, most notably prior to the housing market crash of 2008.
“This new disclosure suggests that he now believes that there is an AI bubble which is due to pop.”
Following Burry’s wager Palantir’s stock was nearly 7% down and Nvidia shares were down 2%.
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