On Tuesday local time, artificial intelligence Palantir CEO Alex Karp publicly denounced short sellers, specifically naming Michael Burry, the real-life inspiration for the film "The Big Short." A previous document revealed that Burry shorted Palantir and Nvidia. .
“It’s very strange that the two companies he shorted happen to be extremely profitable,” Karp said on a show on Tuesday. “The idea that chip and ontology companies (key supporting technologies in the AI technology system) are worth shorting is simply insane.”
“He’s actually shorting AI…and his targets are us and Nvidia ,” he added.
“I do find this behavior appalling, and I will celebrate if it turns out to be wrong,” Karp said.
“It’s not even certain that he’s actually shorting us. He might be doing this just to ‘find a way out of the position without looking like a fool,’” he said.
"Short selling is very complicated, and frankly I think it's market manipulation. We've achieved our best results ever. It's not even clear if he did it to close out his position. These people claim to be ethical, but they're actually shorting one of the world's best companies," he said.
Palantir shares fell 8% on Tuesday despite the company reporting third-quarter results that beat Wall Street expectations and providing optimistic guidance. Investors are increasingly cautious about the high valuations of AI- related stocks. Palantir shares have risen more than 150% this year and have a forward price-to-earnings ratio of 228.
Nvidia shares fell 4% on Tuesday.
Burry's hedge fund, Scion Asset Management, disclosed in its latest 13F filing that it holds Nvidia put options with a notional value of approximately $187 million and Palantir put options with a notional value of approximately $912 million. The filing did not specify the strike price or expiration date of these contracts.
It is unclear whether Burry profited from Tuesday's decline. The document reflects his holdings as of the end of September, and he may have adjusted his portfolio since then.
Last week, after two years of silence, Burry spoke out again, warning of the risk that the market bubble might burst.
Burry shared a still from the movie "The Big Short" on social media platform X, showing Christian Bale, the actor who plays him, staring blankly at a computer screen. He captioned the image: "Sometimes we see the bubble. Sometimes we can make a difference. Sometimes, the only way to win is not to participate."
Burry was credited with accurately shorting mortgage-backed securities before the 2008 financial crisis. His fame grew, with Michael Lewis's book "The Big Short" and the Oscar-winning film "The Big Short" both documenting this deal.
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(Article source: CLS)
