Alex Karp blasts 'Big Short' investor Michael Burry as 'bats--- crazy' for bets against Palantir, Nvidia

In a recent outburst, Palantir's CEO Alex Karp took aim at short-sellers, specifically targeting renowned investor Michael Burry. This came after a regulatory filing revealed Burry, known for his role in 'The Big Short', had taken positions against both Palantir and Nvidia at the end of the last quarter. Karp expressed his disbelief during an appearance on CNBC's "Squawk Box", stating, "The two companies he's shorting are the ones making all the money, which is super weird. The idea that chips and ontology is what you want to short is bats--- crazy." He further emphasized, "He's actually putting a short on AI... It was us and Nvidia." Despite Palantir outperforming Wall Street expectations for the third quarter and providing positive guidance, its shares saw a dip of approximately 8% in premarket trading. Investor skepticism has been mounting regarding the high valuations of AI-related stocks. Leading up to Tuesday's trading, Palantir's stock had surged 173% this year, though it carries a forward price-earnings ratio of 228. Meanwhile, Nvidia experienced a decline of over 2%, despite having gained more than 50% year-to-date. Karp condemned the actions of short-sellers, labeling them as egregious and vowing to celebrate when their predictions prove incorrect. According to the latest filing from Burry's hedge fund, Scion Asset Management, he holds put options valued at nearly $187 million against Nvidia and approximately $912 million against Palantir as of September 30. However, the filing did not disclose specific strike prices or expiration dates for these contracts, leaving uncertainty about Burry's potential profits from Tuesday's market movements. This disclosure followed a recent cryptic message from Burry on social media, indicating a cautious outlook on the market. He shared with his 1.3 million followers, "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play." Burry became widely recognized for his foresight in betting against mortgage-backed securities prior to the 2008 financial crisis, a story that gained attention through Michael Lewis' book and the subsequent Oscar-winning film.