Michael Burry, Peter Thiel, more investors bet against AI boom

Despite 2025’s AI roar and Nvidia’s little sprint past a $5 trillion marketplace cap, a fistful of marquee investors are getting retired of the AI marketplace — oregon betting against it.

Famed Big Short capitalist Michael Burry has taken much than a cardinal dollars’ worthy of bearish options betting against starring AI stocks Nvidia and Palantir. Peter Thiel has afloat cashed retired of his Nvidia position. And SoftBank has unloaded its full $5.8 cardinal involvement successful Nvidia to money its stake connected ChatGPT shaper OpenAI.

Even the quants are trimming salient AI positions. Bridgewater, Tiger Global, and different funds person pared backmost Big Tech positions, portion hedge money travel information shows rising short-selling involvement crossed the AI market.

“The information that today’s largest tech firms are raising indebtedness astatine standard to money AI infrastructure is simply a wide signal: We’re successful the mediate of 1 of the biggest compute-buildouts successful history,” said Andrew Sobko, laminitis astatine Argentum, a decentralized marketplace for the AI chips known arsenic graphics processing units (GPUs). “But with billions of dollars borrowed, investors person a close to ask: What happens if the request curve stalls oregon the expected returns don’t materialize?”

Here's what to cognize astir immoderate of the biggest and astir notable bets against the AI boom.

• Bridgewater Associates has trimmed large-cap AI and Big Tech positions, signaling caution astir elevated valuations successful the AI trade.

• Tiger Global Management has reduced vulnerability to large AI and mega-cap tech names, portion of a broader portfolio de-risking successful the sector.

• Tiger Cub hedge funds similar Coatue, Lone Pine, Viking, and D1 person pared backmost AI and Big Tech positions, reflecting a displacement toward much balanced exposure.

• Michael Burry has taken connected much than $1 cardinal successful bearish enactment options against starring AI stocks Nvidia and Palantir.

• Peter Thiel has afloat exited his Nvidia stake, liquidating his remaining shares.

• SoftBank has sold astir $5.8 cardinal worthy of Nvidia stock, reallocating superior toward different concern themes and caller bets.

Professional investors accidental that AI remains successful the aboriginal infrastructure-building phase, with notable “pick-and-shovel” winners similar Nvidia seeing their revenues skyrocket.

“After increasing much than 60% successful 2 years successful row, hyperscalers’ (companies that run massive, hyperscale information centers providing immense amounts of on-demand computing power, storage, and networking services) superior expenditures are expected to turn different 30% and apical $500 cardinal successful 2026, importantly higher than 10% maturation projected successful the opening of 2025,” said Pei-ju Lee, lawman manager of probe astatine Bradley, Foster & Sargent, a fiscal advisory firm.