Palantir Technologies Inc. CEO Alex Karp has publicly criticized Michael Burry, the investor who inspired "The Big Short," for shorting his company and NVIDIA, calling the move against AI industry leaders "completely insane."

Michael Burry's Scion Asset Management reportedly held short positions worth over $1 billion combined in NVIDIA and Palantir, accounting for about 80% of its portfolio. Burry recently hinted at market concerns on social media, stating, "Sometimes we see bubbles, sometimes we can act, sometimes the only winning move is not to play." Burry gained fame for successfully shorting mortgage-backed securities before the 2008 financial crisis, a trade immortalized in the Oscar-winning film "The Big Short." Burry declined to comment on Karp's remarks.

**CEO Accuses Market Manipulation**

Karp launched a scathing critique against short sellers, stating:

"It's bizarre that he chose to short two companies performing so exceptionally well. Trying to short both chips and ontology [referring to core AI fields] is absolutely crazy."

He argued Burry is effectively "shorting AI" and took aim at short-selling practices overall, suggesting market manipulation:

"Shorting is very complex, and frankly I believe there's market manipulation happening here. We've delivered our strongest performance ever. I even wonder if he's using public statements to cover his position exits. These people claim moral high ground while shorting the world's most innovative companies—it's hypocritical."

Karp added:

"It's unclear if he's actually shorting us. This might just be 'how do I exit my position without looking foolish?' I do consider this behavior reprehensible, and I'll cheer when it's proven wrong."

Despite Palantir's strong Q3 earnings, its stock declined, reflecting growing investor concerns about AI-related valuations. The company trades at a forward P/E of 228x, far above market averages. As of writing, Palantir shares stood at $193.21, up 157% year-to-date.

Regulatory filings show Burry held put options with notional values of $912 million against Palantir and $187 million against NVIDIA as of September 30, though specific strike prices or expiration dates weren't disclosed. It remains unclear whether Burry profited from Tuesday's price drop, as the filing reflects end-Q3 positions that may have since changed. Burry declined to comment on current holdings.