“Hearing short-sellers attack a software company I believe is America’s most important—and the world’s—just to profit, while questioning the AI revolution… it truly frustrates me,” he stated.
The source of Alex Karp’s frustration is Michael Burry, a renowned fund manager. In a recent regulatory filing, Burry disclosed that his Scion Asset Management fund had taken a short position against Palantir’s stock.
 Michael Burry
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Michael Burry gained fame through Michael Lewis’ 2010 book, *The Big Short*. Portrayed as an eccentric doctor-turned-brilliant investor, he made a legendary short bet against subprime mortgage bonds before the 2008 financial crisis. In the film adaptation, Christian Bale captures Burry’s quirky genius, highlighting his ability to foresee crises and profit from them.
Burry’s influence extends to retail investors, who helped propel Palantir into one of the world’s top-performing stocks. His $912 million short position against Palantir—along with a smaller bet against Nvidia—caused immediate market buzz. On November 4th, Palantir’s stock dropped nearly 8%, despite the company exceeding profit expectations.
However, the actual cost of the short contracts was only $9.2 million, and Burry noted the position was closed early. Karp may now breathe easier as Burry announced the fund’s closure this weekend.
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This period has been particularly challenging for contrarian, value-focused, and bearish investors. Notable short-sellers like Jim Chanos and Nate Anderson have recently closed their funds amid a surging stock market. Those skeptical of the AI boom face even harsher market pressures.
“My valuation of securities—frankly, for a long time now—has been out of step with the market,” Burry wrote to investors.
At 54, Michael Burry stands out even among eccentric short-sellers. He lost an eye to retinoblastoma at age two and wears a prosthetic. Though self-described as a loner, he’s been married twice. “I don’t need friends,” he told Michael Lewis. “I’m happy in my own world.”
After studying English, economics, and pre-med at UCLA, Burry attended Vanderbilt Medical School and interned at Stanford. However, his passion for stock-picking took precedence.
In 2000, he left medicine to launch Scion Capital, inspired by Terry Brooks’ *The Scions of Shannara*. Burry quickly built a reputation as a contrarian investor. “To excel as an investor, you must embrace a style that suits you,” he shared. “The late 1990s forced me to become a value investor, as everyone else’s actions seemed irrational.”
Post-housing bubble, Burry gained a massive Twitter (now X) following for his cryptic, eccentric posts under the handle “Cassandra Unchained,” inspired by the Greek prophet whose warnings went unheeded—a reference Warren Buffett once made.
Burry’s AI skepticism coincides with this year’s market downturn. The Nasdaq has fallen 3.6% this month, with AI-related stocks like Palantir dropping further.
One of Burry’s concerns is that tech giants are boosting profits by extending the estimated lifespan of AI servers, thereby spreading depreciation costs over a longer period.
Tech investors counter that depreciation issues are known and don’t overshadow the bigger question: Will massive AI infrastructure investments pay off long-term? “Extended depreciation timelines aren’t the core issue,” notes Jim Tierney of AllianceBernstein.
While Burry’s 2008 short bet earned him a loyal retail investor following, many professionals view his post-2007 performance as unremarkable. “What major moves has he made since then?” one veteran investor questioned, puzzled by Burry’s continued spotlight.
Burry previously stepped back from investing after closing Scion Capital post-2008, reopening Scion Asset Management years later. This hiatus may be temporary.
He hinted on X before filing for closure: “Sometimes we see bubbles. Sometimes we act. Sometimes, the only winning move is not to play.”
– 12:00 15/11/2025
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