\nAlamy
\n<\/a><\/p>\nHis hugely controversial long-term $1bn bet started in 2005 and would eventually increase the value of his fund by 489 per cent by the time the system collapsed.<\/p>\n
The details of this remarkable story was documented in Michael Lewis\u2019s 2010 book The Big Short, which was later turned into a 2015 Oscar-winning film.<\/p>\n
AI’s transformative potential has excited investors and led to a huge surge in the stock prices of a handful of US tech companies.<\/p>\n
Last week, Nvidia, which has become the chip-maker of choice for AI data centres, became the first publicly traded company in the world to surpass $5tn in value, making it worth more than the total GDP of Germany.<\/p>\n
Palantir, which specialises in AI data analysis, has seen its stock rise by 400 per cent over the last year.<\/p>\n
But these sky-high valuations may not be justified, with a report by the Massachusetts Institute of Technology (MIT) in August warning the vast majority of AI investments were yielding “zero returns” for business.<\/p>\n
Concerns about a bubble were also expressed by Sam Altman, the chief executive of OpenAI, who said in the summer: \u201cAre investors overexcited? My opinion is yes.”<\/p>\n
Investors have poured $161bn inon AI so far this year, PitchBook reports, with the lion’s share of this eye-watering figure going to just 10 companies.<\/p>\n
David Solomon, Goldman Sachs\u2019 chief executive, said the majority of this capital would \u201cturn out to not deliver returns\u201d.<\/p>\n
After news of Mr Burry’s bet broke on Tuesday, Nvidia shares were down 2 per cent in pre-market trading.<\/p>\n
Palantir\u2019s stock price was almost 7 per cent lower before markets opened. <\/p>\n
Scion’s put contracts are listed in its 13F filing, a report that all institutions with at least $100m under management must file with the Securities and Exchange Commission (SEC).<\/p>\n
The expiration date or the \u201cstrike price\u201d that the fund has agreed to sell shares at have not been disclosed. <\/p>\n
Palantir and Nvidia were contacted for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"Michael Burry, who was depicted by Christian Bale in the film The Big Short, has gambled $1.1bn (\u00a3840m)…\n","protected":false},"author":2,"featured_media":263827,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-263826","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/263826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=263826"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/263826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/263827"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=263826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=263826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=263826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}