{"id":138218,"date":"2025-11-13T20:44:09","date_gmt":"2025-11-13T20:44:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/138218\/"},"modified":"2025-11-13T20:44:09","modified_gmt":"2025-11-13T20:44:09","slug":"after-attempting-to-short-the-ai-bubble-the-big-short-guy-suddenly-closes-up-shop","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/138218\/","title":{"rendered":"After Attempting to Short the AI Bubble, the “Big Short” Guy Suddenly Closes Up Shop"},"content":{"rendered":"

Earlier this month, news emerged that Michael Burry, who famously shorted the US housing market before its collapse in 2008, had placed bets worth over $1 billion<\/a> against the share prices of AI chipmaker Nvidia and software company Palantir.<\/p>\n

The reveal compounded existing concerns that the AI industry was growing into an enormous bubble that could take the US economy with it<\/a>.<\/p>\n

However, the famed asset manager\u2019s story has taken several wild turns since then that have led to far more questions than answers. An October 27 letter Burry sent to investors<\/a>, sent roughly a month after<\/a> he made his short positions against Palantir and Nvidia, revealed that he would \u201cliquidate the funds\u201d of his hedge fund, Scion Asset Management, and \u201creturn capital\u201d by \u201cyear\u2019s end.\u201d<\/p>\n

The leak coincided with the news that the fund had terminated its registration<\/a> with the US Securities and Exchange Commission database, leading to widespread rumors that Burry was taking a step back.<\/p>\n

However, as Reuters points out<\/a>, deregistering doesn\u2019t necessarily mean the hedge fund is no more. Instead, Scion is no longer required to file reports with the regulator or any US state.<\/p>\n

In his letter, though, Burry implied that his timing may have been off. After all, it\u2019s been a rough ride for short sellers this year. Valuations of AI companies are continuing to soar, despite a not insignificant tech selloff<\/a> earlier this month, eclipsing any standing revenues by a widening \u2014 and to many, alarming \u2014 margin. Nvidia is up over 37 percent, and Palantir is up 126 percent year to date, reaching a dizzying price-to-earnings ratio of over 200<\/a>.<\/p>\n

According to the Financial Times<\/a>, Burry wouldn\u2019t be the first short seller to fold. Other famous traders, including Jim Chanos and Nate Anderson, also closed up shop in light of still-growing AI hype.<\/p>\n

\u201cMy estimation of value in securities is not now, and has not been for some time, in sync with the markets,\u201d he wrote in the letter.<\/p>\n

Compounding the confusion over Burry\u2019s high-profile attempt to short the AI industry was his most recent claim that media outlets had vastly exaggerated the scale of his short positions. In a Wednesday tweet<\/a>, Burry clarified that he had \u201cspent $9,200,000, not $912,000,000,\u201d in his bet against Palantir.<\/p>\n

\u201cEach of those doodads let me sell [Palantir] at $50 in 2027,\u201d he added.<\/p>\n

Now that his hedge fund has been liquidated, plenty of questions remain about Burry\u2019s current position. In a cryptic announcement, Burry wrote in his tweet that he would be \u201con to much better things November 25,\u201d without elaborating.<\/p>\n

It\u2019s difficult to get a firm grasp on Burry\u2019s motivations. Was he looking to get out, admitting that it would simply take too long for the AI bubble to pop, making it a financially unsavvy move, as some have suggested on social media<\/a>? <\/p>\n

In a November 11 tweet, he posted a picture<\/a> of actor Christian Bale, who played him in the 2015 movie \u201cThe Big Short,\u201d about his exploit of the 2008 financial crisis, writing in the caption: \u201cMe then, me now.\u201d<\/p>\n

\u201cIt worked out,\u201d he added. \u201cIt will work out.\u201d <\/p>\n

Could Burry look to continue his quest to short the AI bubble on his own terms, allowing him to invest privately and forego the need to register with federal regulators?<\/p>\n

\u201cDon\u2019t count him out, just expect him to operate off the grid for a while,\u201d Erlen Capital Management Bruno Schneller told CNBC<\/a>. \u201cHe may simply pivot to a family-office setup and run his own capital.\u201d<\/p>\n

More on AI: Dark Clouds Suddenly Gathering Over AI Industry<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Earlier this month, news emerged that Michael Burry, who famously shorted the US housing market before its collapse…\n","protected":false},"author":2,"featured_media":138219,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":{"0":"post-138218","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ie","12":"tag-ireland","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/138218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=138218"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/138218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/138219"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=138218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=138218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=138218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}