According to Gizmodo, Michael Burry’s Scion Asset Management disclosed put options against Nvidia and an even larger position against Palantir in September 30 regulatory filings released Monday. Nvidia recently became the only company worth over $5 trillion, while Palantir’s stock surged 150% this year. Burry pinned a cryptic X post showing Christian Bale portraying him in “The Big Short” with text about bubble recognition. He later posted charts showing declining year-over-year cloud growth at Amazon, Alphabet and Microsoft from 2023-2025 versus 2018-2022, plus warnings about tech capex growth matching the 1999-2000 bubble. Palantir CEO Alex Karp called Burry’s move “egregious” and promised to “be dancing around when it’s proven wrong.”
<h2 id="bubble-warnings”>The Ghost of Dot-Com Past
Here’s the thing about Burry’s warning – it’s not just him seeing ghosts. The Bank of England recently said stock valuations look like the dot-com peak. Apollo’s chief economist noted the top S&P 500 companies are actually more overvalued than in the 1990s. And Burry’s not just talking – he’s putting real money behind this thesis.
That chart about declining cloud growth? That’s huge. Amazon, Microsoft, and Google basically are the cloud market. If their growth is slowing while AI hype keeps building, something’s got to give. We’re seeing every company from your local pizza shop to Fortune 500 giants slapping “AI” on their earnings reports. Sound familiar? It should – that’s exactly what happened with “.com” in the late 1990s.
The AI Circle Jerk
Burry’s third post showed what Bloomberg calls “circular dealmaking” with Nvidia at the center. Basically, all these AI companies are investing in each other. Nvidia sells chips to Microsoft, Microsoft invests in OpenAI, everyone uses Amazon’s cloud… it’s a giant circle of money flowing between the same players.
Now, this isn’t necessarily evil. But it does create systemic risk. When everyone’s success depends on everyone else succeeding, one crack can bring down the whole house of cards. We saw this with telecom after the dot-com bubble – thousands of miles of unused fiber optic cable buried in the ground because demand didn’t materialize fast enough.
What This Means for Everyone Else
So what happens if Burry’s right? For regular investors, it could mean another nasty market correction. For developers and startups banking on AI funding? Let’s just say the party might end abruptly. Enterprise companies pouring billions into AI infrastructure might find themselves with expensive systems and nowhere near the expected ROI.
But here’s the crucial point Burry himself acknowledges – the internet did eventually transform everything. The fiber optic cables eventually got used. The question isn’t whether AI has potential, but whether stock prices have gotten way ahead of reality. Are we building infrastructure for demand that’s years away? History suggests we probably are.
The real risk isn’t that AI fails – it’s that we overestimate how quickly it will deliver returns. When Burry posts cryptic warnings and backs them with real SEC filings, maybe we should at least pay attention. After all, this is the guy who made billions betting against conventional wisdom last time.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
I don’t know whether it’s just me or if everyone else experiencing problems with your website.
It appears like some of the text on your posts are running off the screen. Can someone else please provide feedback and let
me know if this is happening to them too? This may be a
problem with my browser because I’ve had this happen before.
Thanks
Hi, i believe that i noticed you visited my blog so i came to go
back the prefer?.I’m attempting to in finding issues to enhance my site!I guess its good enough to make use of some of your concepts!!
Have you ever considered writing an ebook or guest authoring
on other blogs? I have a blog based upon on the same topics you discuss and would love
to have you share some stories/information. I know
my subscribers would enjoy your work. If you are even remotely interested, feel free to shoot me an email.
I know this site presents quality dependent articles and other data, is there any other web page which provides these
information in quality?
With havin so much written content do you ever run into any issues of
plagorism or copyright infringement? My website has a lot of completely unique content
I’ve either authored myself or outsourced but it seems a lot of
it is popping it up all over the internet without my permission. Do you know any techniques to help prevent content from being stolen? I’d certainly appreciate it.
Write more, thats all I have to say. Literally,
it seems as though you relied on the video to make your point.
You obviously know what youre talking about, why throw away your
intelligence on just posting videos to your blog when you could be giving us something informative to read?
great put up, very informative. I’m wondering why the opposite specialists of this sector don’t notice
this. You must continue your writing. I am confident,
you’ve a huge readers’ base already!
certainly like your web-site however you
need to check the spelling on several of your posts.
Many of them are rife with spelling issues and I to find it very bothersome to tell the truth then again I will
certainly come back again.
Superb site you have here but I was curious about
if you knew of any community forums that cover the same topics discussed in this
article? I’d really love to be a part of online community where I can get suggestions from other knowledgeable individuals
that share the same interest. If you have any recommendations, please let me know.
Thank you!
I’ve been exploring for a little for any high-quality articles or blog posts in this kind of house .
Exploring in Yahoo I eventually stumbled upon this website.
Studying this information So i’m glad to show
that I’ve an incredibly good uncanny feeling I found out just
what I needed. I so much surely will make sure to don?t fail
to remember this web site and provides it a glance regularly.
Hey I am so thrilled I found your webpage,
I really found you by accident, while I was looking on Askjeeve for something else,
Nonetheless I am here now and would just like
to say cheers for a incredible post and a all round exciting blog (I also
love the theme/design), I don’t have time to look over it all at the moment but I have book-marked
it and also added your RSS feeds, so when I have
time I will be back to read a lot more, Please do keep up
the awesome job.
Hi there, There’s no doubt that your site could be having internet browser compatibility issues.
Whenever I take a look at your site in Safari, it looks fine however, when opening in Internet Explorer, it has some overlapping issues.
I merely wanted to give you a quick heads up! Other than that, excellent site!
Article writing is also a excitement, if you be
acquainted with after that you can write or else it is complex to write.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.
Hi there mates, its wonderful piece of writing regarding cultureand
completely defined, keep it up all the time.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?