Michael Burry Continues Shorting Palantir, Sees Anthropic as Top AI Winner
Michael Burry, renowned for predicting the housing market crash in 2008, is continuing to short Palantir Technologies. In a recently deleted post on X, Burry claimed that “Anthropic is eating Palantir’s lunch.” Following this announcement, Palantir’s stock experienced a sharp decline of over 13% within five days.
Burry’s Position on Palantir
Burry first revealed his put options on Palantir in the fall of 2025. Put options enable investors to sell a stock at a predetermined price by a specified date, serving as a strategy for those anticipating a price drop. Despite some recovery in Palantir’s share price following supportive comments from Donald Trump on April 10, Burry remains committed to his positions, reinforcing his bearish outlook on the company.
Reasons for Burry’s Short Position
In his latest Substack update, Burry provided reasons for betting against Palantir, contrasting it with Anthropic. He stated that Anthropic’s valuation surged from $9 billion to $30 billion in a matter of months, whereas Palantir took two decades to reach $5 billion.
- Market Growth: Burry emphasized that Anthropic offers a more user-friendly and cost-effective solution for businesses.
- Government Contracts: He noted that Palantir’s reliance on low-margin government contracts limits its growth potential.
- New Enterprise Spending: Burry claimed that Anthropic captures approximately 73.3% of new enterprise spending on AI, indicating its rapid adoption.
Although Burry referenced the Ramp report, it’s essential to clarify that these figures do not account for AI options from other competitors like Google or xAI.
AI Market Landscape
According to the same report, OpenAI leads the market, with 34.4% of U.S. businesses having a paid subscription, while Anthropic holds a significant second place at 24.4%. This positioning suggests that Anthropic is well-placed to expand its market share, especially with initiatives like Project Glasswing aimed at countering AI-driven cyber threats.
Burry’s Broader Concerns
Burry’s skepticism extends beyond Palantir. In a November 2022 post, he suggested that there could be a bubble in the AI sector, particularly referencing NVIDIA. He has cautioned investors against heavily investing in NVDA stock, drawing parallels to historical market patterns that led to significant declines.
Conclusion
While Michael Burry acknowledges the potential in the AI space, his focus remains firmly on shorting Palantir, seeing Anthropic as a more favorable investment. As the AI market continues to evolve, investors may consider reassessing their portfolios in light of Burry’s analysis.
