Michael Burry made $100M from the 2008 financial crash — and now he’s betting on the AI bubble bursting. What you can do

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Michael Burry isn’t acrophobic to spell against the herd.

The hedge money manager famously stake against the U.S. lodging marketplace up of the 2008 clang — earning $100 cardinal for himself and $725 cardinal for his investors — a determination aboriginal profiled successful the deed movie “The Big Short” (1).

Now, he’s raising alarms again.

“Sometimes, we spot bubbles,” Burry wrote precocious connected X. “Sometimes, determination is thing to bash astir it. Sometimes, the lone winning determination is not to play” (2).

Yet this time, helium is playing.

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In a caller 13F filing connected Monday, Burry’s firm, Scion Asset Management, revealed bearish positions against 2 of the market’s hottest names (3).

Scion disclosed enactment options connected 1,0000,000 shares of Nvidia (NVDA) and 5,000,000 shares of Palantir (PLTR) arsenic of Sept. 30.

A enactment enactment gives the holder the close — but not the work — to merchantability a banal astatine a acceptable onslaught terms earlier expiration, a strategy typically utilized erstwhile an capitalist expects the stock’s terms to decline.

Nvidia has go the chipmaker of prime successful the AI contention — and a Wall Street idol. Its shares person surged 41% year-to-date and an eye-popping 1,240% implicit the past 5 years, helping it concisely scope a $5-trillion valuation recently.

Palantir — a fast-rising information and bundle powerhouse — is different darling of the AI boom. Despite a caller post-earnings pullback, shares are inactive up 260% implicit the past 12 months.

While Scion’s filing doesn’t see the onslaught prices, expiration dates oregon premiums paid for those options contracts, the underlying shares tied to these enactment positions carried a combined notional worth of astir $1.1 billion.

Burry himself adjacent leaned into the play — pairing his “bubble” comments with a photograph of Christian Bale portraying him successful “The Big Short.”

Not everyone is impressed. Palantir CEO Alex Karp fired backmost connected CNBC.

“The 2 companies he’s shorting are the ones making each the money, which is ace weird,” Karp said (4). “The thought that chips and ontology is what you privation to abbreviated is bats— crazy.”

Still, concerns astir speculation successful the AI commercialized are bubbling up elsewhere. Goldman Sachs CEO David Solomon precocious warned that “a clump of the superior that’s being deployed [in AI] volition really not nutrient immoderate returns” (5).