Michael Burry’s Massive Bet Against the AI Boom

## Overview of Palantir Technologies Palantir Technologies is a leading American software company specializing in data integration and analytics platforms. Founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, Alex Karp, and Nathan Gettings, it is headquartered in Denver, Colorado. Palantir's software is designed to create actionable insights from complex data sets, often using incomplete information, which sets it apart from traditional data analysis tools. ### History and Key Platforms Palantir's early clients were primarily federal agencies within the U.S. Intelligence Community (USIC). Over time, it expanded its customer base to include international governments, state and local governments, and private companies. The company offers four main platforms: - **Palantir Gotham**: Primarily used by government agencies for predictive policing and counter-terrorism. - **Palantir Foundry**: Used by corporate clients for data integration and analysis, enhancing decision-making across industries. - **Palantir Apollo**: Facilitates continuous integration and delivery across all environments. - **Palantir AIP**: Though less detailed, it aligns with the company's broader mission of integrating AI into its platforms. ### Achievements and Current Status Palantir has achieved significant recognition for its innovative approach to data analysis. Its platforms are designed to work with incomplete data sets, allowing users to query data using natural language and receive real-time results. This capability has made Palantir a leader in the data analytics sector. As of 2025, Palantir's market valuation has been a subject of debate, with some labeling it as one of the most overvalued firms, valued at $430 billion—over 600 times its 2024 earnings[1]. Despite this, Palantir continues to expand its operations and client base, with a focus on enhancing user experience through human-driven analysis of real-world data[5]. ### Notable Aspects - **Government and Private Sector Involvement**: Pal

Nvidia Corporation, founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem and headquartered in Santa Clara, California, is a pioneering American technology company best known for inventing the graphics processing unit (GPU) in 1999[1][2][4]. Initially focused on GPUs for video gaming, Nvidia has expanded its scope to serve diverse markets, including artificial intelligence (AI), high-performance computing (HPC), professional visualization, automotive technology, and mobile devices[1][3]. Nvidia’s GPUs, such as the GeForce series for gamers and the RTX series for professional applications, are central to its dominance, controlling over 90% of the discrete GPU market as of early 2025[1][4]. The company’s investment in CUDA, a parallel computing platform and API launched in the early 2000s, revolutionized GPU computing by enabling GPUs to accelerate a wide range of compute-intensive tasks, particularly in AI and scientific research[1][4]. By 2025, Nvidia commanded over 80% of the GPU market for AI training and inference and supplied chips to more than 75% of the world’s top 500 supercomputers[1]. Nvidia’s influence extends beyond hardware. It offers a comprehensive ecosystem including software platforms like Omniverse for 3D simulation and digital twins, AI frameworks such as MONAI for medical imaging, and Jetson for robotics and edge AI[2][3]. Its technologies power autonomous vehicle data centers, AI factories, and cloud gaming services like GeForce Now[2][7]. Financially, Nvidia achieved record full-year revenue of $130.5 billion in fiscal 2025, with a workforce of over 36,000 employees worldwide and a robust patent portfolio exceeding 8,700 applications[2]. The company is recognized for innovation and workplace excellence, topping Forbes’ "America’s Best Companies 2025" and Fast Company’s "World’s Most Innovative Companies"

Scion Asset Management, LLC is a private investment management firm founded in 2013 by Dr. Michael J. Burry, renowned for his contrarian and value-oriented investing style famously depicted in the film *The Big Short* for predicting the U.S. housing crisis[1][4]. Headquartered in Saratoga, California, the firm primarily serves institutional clients and high-net-worth individuals, managing multiple private investment funds including Scion Master G7 and Scion Value G7, which operate through both onshore and offshore structures[2]. The firm’s investment philosophy centers on deep fundamental research and value investing, seeking undervalued or misunderstood securities, often in out-of-favor markets or special situations. Scion applies a holistic approach that incorporates fundamental, technical, and macroeconomic analysis to identify mispriced assets while emphasizing risk management and margin of safety. The firm also employs derivative instruments, such as options and credit default swaps, to hedge risks or enhance returns[1][2]. Scion’s portfolio typically includes a concentrated number of equity positions, frequently rotating holdings to exploit market inefficiencies. Notable recent holdings include technology giants like NVIDIA Corporation and Palantir Technologies, along with healthcare and consumer companies such as Molina Healthcare and Lululemon Athletica. Their most recent 13F SEC filings report a portfolio value around $1 billion, reflecting active management and occasional adjustments in holdings[1][3][5]. Key achievements include lasting recognition for Dr. Burry’s prescient investment calls during the 2008 financial crisis and continued reputation for disciplined, contrarian investment strategies. While the firm does not manage money for retail clients, it is respected in the hedge fund community for its rigorous research and long-term capital appreciation focus[2][7]. Currently, Scion Asset Management remains a relatively small but influential hedge fund, known for strategic, research-driven investing under Burry’s leadership, maintaining a selective and dynamic portfolio aligned with its value-driven ethos[