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Michael Burry's Bearish AI Bubble Bet

Kavout

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This episode  provides an extensive analysis of Michael Burry’s bearish investment against major artificial intelligence (AI) companies, specifically detailing the put options worth over $1.1 billion placed on Nvidia and Palantir as of Q3 2025. This analysis explains Burry's core thesis, which warns of an AI bubble due to extreme valuations and concerns over circular financing—where major players invest in each other, potentially inflating sales similar to the dot-com era. The text contrasts the bearish perspective (citing historical parallels and Palantir's 236x forward P/E ratio) with the bullish counterarguments, which emphasize the companies’ genuine revenue and strong market positions. Ultimately, the overview suggests that Burry's move is a high-profile caution signal regarding current AI valuations, especially given the risks posed by slowing cloud growth and increasing market concentration.

Disclaimer: This podcast by kavout.com is for informational and educational purposes only and does not constitute investment advice. All opinions are those of the hosts and guests. Please consult a qualified financial advisor before making any investment decisions.