Michael Burry made a big bet against Nvidia and Palantir due to fears of an 'AI bubble'

Investment company Scion Asset Management, which is run by a well-known investor Michael Burry, bet on a fall Nvidia and Palantir sharesAs of September 30, the company acquired put options (that is, bet on the decline in value) of these companies on amounting to more than $1 billion.

Burry fears that the artificial intelligence market is highly overvalued and could soon collapse like the dot-coms did in 2000He had already warned about this through his social media account X (formerly Twitter), posting a cryptic message: "Sometimes the only winning move is not to play all."His statement sounded like a direct signal: he sees an impending crisis and acts in advance.

The cause of alarm was numerous complicated transactions, in which the largest AI companies participate. For example, Nvidia invests in startups, which then use the funds to buy its chips., creating a vicious circle. Such schemes raise suspicions of artificially inflating demand.

Against this background, Nvidia shares have already fallen by 2,2%, and Palantir has lost 6,7% of its value.Palantir CEO Alex Karp responded sharply, calling Burry's criticism "nonsense," but the market has begun to react. Many perceive Burry's actions as warning of a possible collapse, similar to his famous bet against the mortgage market in 2008.