Palantir CEO Alex Karp has unleashed a fierce and unfiltered attack on “Big Short” investor Michael Burry, branding him as “bats— crazy” for placing massive bets against both **Palantir Technologies** and **Nvidia**—two of the most prominent players in the artificial intelligence (AI) sector[1][2][3][4]. The confrontation, which erupted publicly in early November 2025, underscores deep divisions in the market over the future of AI and raises questions about the motivations behind high-profile short selling.
**Michael Burry’s Contrarian Bet**
Michael Burry, legendary for his prescient bet against the US housing market prior to the 2008 financial crisis, is once again making headlines with a starkly bearish stance on technology’s hottest stocks. According to recent SEC filings, Burry’s Scion Asset Management acquired put options on approximately 5 million shares of Palantir—representing a notional value of $912 million, or about 66% of his firm’s assets under management[1]. He also holds put options on 1 million shares of Nvidia, worth an estimated $187 million[1]. In both cases, he is betting these AI giants’ stock prices will fall.
The timing of Burry’s move is notable. Palantir’s stock had just reached a 52-week high, fueled by a blowout third quarter in which the company reported $1.18 billion in revenue (a 63% year-over-year increase) and raised its full-year guidance. Nvidia remains the most valuable chipmaker globally, credited with powering the current AI boom. Yet, Burry’s bearish position sent shockwaves through the market, triggering an 8% drop in Palantir shares even as they remain up 155% year-to-date[1].
**Alex Karp’s Unfiltered Rebuttal**
In a post-earnings interview with CNBC on November 4, 2025, Alex Karp did not hold back[1][3][4]. He described Burry’s short as “egregious,” accused him of misunderstanding both Palantir’s business fundamentals and the broader AI economy, and even questioned the ethics of shorting companies he views as performing a “noble task”[1][4]. Karp’s most memorable line—“The idea that chips and ontology is what you want to short is bat s— crazy!”—captured headlines and social media alike[1][2][3].
Karp expanded on his criticism by suggesting that short sellers like Burry are “market manipulators” intent on distorting perceptions of high-performing companies for personal gain[1][4]. “It’s not even clear he’s not doing this to get out of his position,” Karp speculated, implying that Burry’s motivations might be less about conviction and more about tactics[1][4]. He further argued that most of America’s GDP growth is coming from AI innovation, making Burry’s bet look not just risky, but irrational.
**The Market’s Divided Response**
Karp’s tirade comes as analysts remain sharply divided over Palantir’s future. Bulls point to the company’s robust fundamentals, with one veteran analyst describing Palantir’s financial state as “the greatest balance sheet I can remember seeing,” citing surging sales, expanding margins, and enormous cash flows[1]. Palantir’s commercial business is booming and its technology is seen as indispensable by many government and private sector clients.
On the other hand, skeptics caution that Palantir’s growth story may be overwhelmingly US-centric, with international business lagging behind[1]. RBC Capital, for example, raised its price target for Palantir but maintained an Underperform rating, noting that while current profitability is strong, long-term growth beyond the initial AI adoption phase remains uncertain.
Nvidia, for its part, is regarded as the backbone of the AI revolution due to its dominance in advanced GPU chips, but it too faces questions about whether its meteoric rise can be sustained in the face of increasing competition and market saturation.
**Short Selling in the Spotlight**
Beyond the specifics of Palantir and Nvidia, the Karp-Burry clash has reinvigorated debate over the role of short selling in modern markets. Karp drew a distinction between theoretical shorting—an accepted practice in financial markets—and targeting companies he perceives as “doing a noble task,” such as supporting defense and critical infrastructure[1][4]. He vowed to “dance around” if Burry’s bet fails, and called the act of shorting companies like Palantir “egregious.”
Burry, for his part, has not publicly responded to Karp’s remarks as of this writing. However, his record as a contrarian investor—often betting against consensus and profiting handsomely—means that even the most strident criticism is unlikely to sway him.
**Implications for Investors**
For the investing public, the feud highlights key questions:
– **Is Burry right that AI stocks are due for a correction, or is Karp correct that the market is underestimating the real, sustained value of companies like Palantir and Nvidia?**
– **Will short sellers be proven wrong if AI-driven growth continues, or is caution warranted after such rapid appreciation in tech valuations?**
– **How much influence do high-profile investors and outspoken executives have on market sentiment and stock volatility?**
As of early November 2025, Palantir’s shares remain dramatically higher year-to-date, and Nvidia is still viewed as a linchpin in the global tech infrastructure. But Burry’s big short and Karp’s even bigger reaction remind us that, in markets driven by both data and drama, the only certainty is that the debate is far from over[1][2][3][4].
Original source: CNBC Business – Alex Karp blasts ‘Big Short’ investor Michael Burry as ‘bats— crazy’ for bets against Palantir, Nvidia