TLDR:
- Michael Burry exited markets after a $9.2M short targeting Palantir and AI firms’ inflated valuations.
- The investor’s strike price suggests potential 2,600% returns if Palantir drops to pre-rally levels.
- Analysts report AI companies may be hiding $170B in depreciation-related accounting irregularities.
- Burry’s deregistration echoes his 2008 withdrawal after his profitable subprime short.
Michael Burry has exited public markets after placing a $9.2 million short position against the booming artificial intelligence sector.
The “Big Short” investor reportedly executed a massive put option on Palantir, giving him the right to profit if the stock collapses. Market data shows his strike price sits far below the company’s current valuation, signaling a sharp downside expectation.
His sudden deregistration on November 10 has fueled speculation about a broader warning for Silicon Valley.
Burry’s Exit Follows $9.2M Bet Against AI Valuations
Burry’s trade involves 50,000 put contracts against Palantir, reportedly positioning for a potential 2,600% return if the stock crashes. Data circulating online suggests he placed his strike price near $50, while Palantir trades above $180.
According to commentary shared by market watchers, the position implies confidence in a deep correction across AI-linked equities.
Beyond Palantir, Burry’s outlook reportedly includes skepticism toward chipmaker NVIDIA, which he views as overleveraged on expensive infrastructure. Market reports describe NVIDIA’s spending spree on hardware as unsustainable, noting that its high-cost GPUs may become obsolete within three years.
Meanwhile, accounting data cited by analysts claims that major AI firms may be masking over $170 billion in projected losses through extended depreciation schedules.
Observers have drawn comparisons between current AI accounting and historic financial collapses such as Enron and subprime CDOs. According to data posted by Shanaka Anslem Perera, Burry views the ongoing AI buildout as “Silicon Valley’s bubble,” fueled by aggressive revenue assumptions and expensive infrastructure spending.
In 2025 alone, Big Tech firms reportedly invested over $200 billion in AI infrastructure, while revenue growth remained below 20%.
Market Reactions and Burry’s Sudden Disappearance
Following his latest regulatory filing, Burry deregistered his fund, effectively withdrawing from public disclosure obligations. This move mirrors his actions in 2008 when he retreated from the spotlight after shorting the housing market.
The decision signals a personal exit from market management rather than a temporary pause.
His departure coincides with record AI-driven stock performance, as tech shares surged more than 170% this year. Market participants now question whether his exit marks a broader inflection point or a personal retreat from public scrutiny.
Palantir and NVIDIA have yet to comment on the reports, though online speculation about November 25 continues to circulate following Burry’s cryptic post.
The investor, known for his contrarian instincts, appears to have placed his final trade and stepped away entirely. While the AI sector remains bullish, Burry’s move underscores growing unease about valuation sustainability as tech spending outpaces earnings growth.
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