Michael Burry Fires Back At Elon Musk In AI Warfare Debate — Says Palantir Is ‘Overpromising,’ Not Anthropic

• Burry argued Palantir relies on AI models built by companies like Anthropic and “has no real AI software of its own.”
• Burry earlier said the Pentagon’s six-month phase-out of Anthropic’s Claude showed the military still needed the technology.
• Burry, who disclosed a short position in Palantir, has also criticized the company’s spending and valuation. 

Famed “Big Short” investor Michael Burry revived his criticism of Palantir Technologies, Inc. (PLTR) in a public exchange with Tesla CEO Elon Musk, arguing the defense software firm, not Anthropic, is the one “overpromising” on AI as debate intensifies over its role in modern warfare.

PLTR stock snapped two consecutive losing sessions on Wednesday, ending marginally higher at $151.6. However, shares fell over 1% in extended trading. 

Musk Post Triggers Burry’s Palantir Jab

The exchange began after Musk posted on X, asking: “Is there a more hypocritical company than Anthropic?” Burry replied directly: “Easy, $PLTR. #PLTR is the one overpromising here, not Anthropic.”

Musk leads xAI, the developer of the Grok chatbot, which the Pentagon recently moved to deploy in certain classified settings. The decision came even as officials at several federal agencies raised concerns about the model’s safety and reliability, with an internal U.S. General Services Administration assessment reportedly warning that it did not meet safety and alignment expectations for broader federal use without strict oversight.

In another post, Burry expanded on the criticism, arguing that Palantir’s defense software relies heavily on AI models developed by other companies rather than its own underlying technology.

“$PLTR is overpromising here, not Anthropic. This is why Anthropic wants guardrails in military use,” Burry said. He added that “PLTR is the one in over its head, dependent on companies like Anthropic because it has no real AI software of its own.”

Claude AI’s Role In War Under Spotlight

The exchange comes amid growing scrutiny over how AI is being used in military operations. A recent blog post by journalist Robert Wright in The Nonzero Newsletter highlighted a Washington Post report that Anthropic’s Claude AI model has been integrated into Maven, a Pentagon targeting-analysis system operated by Palantir. According to the report, the software helps analyze surveillance data and prioritize potential targets.

Wright referenced reports that U.S. air strikes early in the conflict involving Iran struck an elementary school, killing more than 100 Iranian girls, raising broader questions about how AI-assisted systems are used in combat decisions.

Burry’s Ongoing Criticism Of Palantir

Burry’s remarks also reflect criticism he has voiced previously about Palantir’s role in the defense AI ecosystem. Earlier this month, he said the U.S. government’s decision to allow a six-month phase-out period for Anthropic’s Claude model, even after labeling it a supply-chain risk, showed how important the underlying AI technology has become.

“Removing Claude was a Trumpian thing to do,” Burry had said on X. “The six-month phase-out was the military saying we need Claude for a minute here, and the Palantir wrapper with those other models alone is not enough.” He added that the situation demonstrated the “stickiness” of Anthropic’s technology rather than Palantir’s platform.

Burry’s Bearish View On PLTR

Burry disclosed a short position in Palantir last year, questioning an AI-driven surge in the company’s valuation.

He has also pointed to details from the company’s regulatory filings. In a post last month, Burry highlighted disclosures showing Palantir incurred $17.2 million in expenses in 2025 tied to CEO Alexander Karp’s use of a privately owned aircraft for business and personal travel, more than double the $7.7 million reported a year earlier.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for PLTR was ‘neutral’ amid ‘normal’ message volume.

PLTR stock has surged 94% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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