Who Is Michael Burry and Why He’s Betting Against AI Giants in 2025

Michael Burry, the sharp-eyed investor immortalized in The Big Short, has made another bold move that’s turning heads across Wall Street.

Known for spotting the 2008 financial crisis before it happened, Burry has now taken a bearish stance on artificial intelligence giants Nvidia and Palantir, companies at the heart of today’s tech boom.

Recent filings show his hedge fund, Scion Asset Management, placed put options worth around $1.1 billion against these firms.

Once again, Burry’s contrarian instinct is challenging the crowd, questioning whether the AI frenzy might be the next financial bubble.

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Key Takeaways

1. Michael Burry’s Background: From medical doctor to hedge fund legend, Burry became famous for predicting the housing market crash in 2008.

2. His 2025 Bet: He’s shorting AI leaders like Nvidia and Palantir, suggesting the tech sector may be overvalued.

3. Investor Insight: His move highlights the need for diversification, patience, and risk management in volatile markets.

Michael Burry: The Man Behind “The Big Short”

Michael James Burry, born in 1971 in California, didn’t start as a finance professional, he trained as a medical doctor before diving into investing.

Despite losing an eye to childhood cancer, his vision for spotting market inefficiencies became his trademark.

After earning his MD from Vanderbilt and spending time at Stanford Medical Center, Burry left medicine to launch his own hedge fund, Scion Capital, in 2000.

His focus? Value investing, the principle of buying undervalued stocks based on Benjamin Graham’s teachings.

Burry rose to fame during the 2008 financial crisis. While others were confident in the housing market, he saw the cracks forming early.

His decision to bet against subprime mortgages earned him and his investors hundreds of millions of dollars, a story later immortalized in The Big Short film.

Today, Burry runs Scion Asset Management, where he continues to challenge market trends. His recent focus on AI stocks signals another instance of his skepticism toward market exuberance.

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Understanding Burry’s 2025 AI Short Strategy

In November 2025, regulatory filings revealed that Burry had placed massive put options, bets that stock prices will fall, on Nvidia and Palantir Technologies. Combined, these bets represent nearly 80% of his fund’s portfolio.

Why Nvidia and Palantir?

Nvidia has soared on AI chip demand, becoming the first $5 trillion semiconductor company. Yet Burry may see the hype outpacing fundamentals, especially with rising competition and cyclical risks in hardware markets.

Palantir, known for its data analytics and government contracts, trades at valuation multiples around 700 times earnings. Such lofty numbers remind Burry of bubble conditions when prices reflect emotion, not logic.

His bet doesn’t necessarily mean he dislikes AI, it’s about timing and valuation. Like in 2008, Burry appears to be warning that the current optimism might have gone too far, too fast.

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Lessons Investors Can Learn from Michael Burry

Michael Burry’s strategies are often misunderstood. While some label him a pessimist, his approach is grounded in deep analysis and historical context.

Spotting Market Patterns

Burry’s latest warning mirrors his concerns from the dot-com bubble era. When valuations become extreme and investors chase trends blindly, corrections often follow.

Focus on Fundamentals

His emphasis on intrinsic value encourages investors to examine cash flow, earnings, and balance sheets instead of relying on hype.

Manage Risk Wisely

Even when confident, Burry limits exposure through structured instruments like options. This reminds retail investors to balance conviction with caution and diversify across assets such as metals, traditional industries, and global markets.

Ultimately, his message isn’t to fear innovation but to remain realistic about how markets price it.

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Conclusion

Michael Burry’s 2025 bet against AI giants serves as a timely reminder that even revolutionary technology can face overvaluation.

While Nvidia and Palantir symbolize the promise of artificial intelligence, their sky-high prices also reflect investor excitement that may not last forever.

For everyday traders, Burry’s contrarian stance is less a signal to short AI stocks and more a lesson in discipline, stay patient, question the crowd, and always analyze fundamentals before following trends.

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FAQ

Who is Michael Burry?

Michael Burry is an American investor best known for predicting the 2008 financial crisis. He currently runs Scion Asset Management.

Why is Michael Burry betting against AI companies?

He believes AI-related stocks like Nvidia and Palantir are overvalued and may face a correction similar to past tech bubbles.

How much did Burry invest in this AI short?

Reports show around $1.1 billion in put options, representing roughly 80% of his hedge fund’s portfolio.

What can investors learn from Burry’s strategy?

His approach emphasizes patience, valuation discipline, and risk management, avoiding emotional decisions driven by hype.

Is it safe to follow Burry’s trades directly?

Not necessarily. His strategies are complex and time-sensitive. Retail investors should focus on diversified, well-researched positions instead.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.