Michael Burry Fires Back At Palantir CEO Alex Karp Over AI Short Jab: ‘Cannot Crack A Simple 13F’

• Burry’s firm disclosed massive short bets (valued at over $900 million) against Nvidia and Palantir in a 13F report filed on Nov. 3.
• Karp, who co-founded Palantir, lamented that Burry was shorting one of the “great businesses of the world.”
• Retail traders concurred with his view, stating that Burry’s motive was to manipulate retail traders to follow him down so that he could cover.

Hedge fund manager Michael Burry responded to Palantir Technologies, Inc. (PLTR) CEO Alex Karp’s jab at him regarding the former’s short stance toward the artificial intelligence (AI)-powered data analytics company.

Palantir stock came under significant selling pressure last week despite its beat-and-raise quarter, with some blaming the adverse stock reaction on valuation concerns. Despite the stock’s 11% weekly decline, it is still up more than 125% year-to-date.

Burry Mocks Palantir

Scion Asset Management founder Burry said, “Doesn’t surprise me one bit that Alex Karp and his 'ontology’ @PalantirTech cannot crack a simple 13F. A fundamental principle of any rigorous ontological/epistemological model - whether philosophical or in data science – is recognizing when your information set is insufficient for valid conclusions.” 

Burry shocked the tech world by disclosing massive short bets (valued at over $900 million) against Nvidia and Palantir in a 13F report filed on Nov. 3. He also posted skeptical comments regarding AI on his X accounts. Burry’s bet was among the reasons that brought the Nasdaq Composite down by 3% last week. 

In an interview with CNBC immediately after Palantir’s earnings announcement, Karp called Burry’s short bet against Palantir and Nvidia a bet against AI. “I honestly think what is going on here is market manipulation. “We delivered the best results, everyone, anyone has ever seen. It is not even clear that he is not doing this to get out of his position.”

Karp, who co-founded Palantir, lamented that Burry was shorting one of the “great businesses of the world.” Those backing Palantir also cried foul over the unusual time of release of Scion’s 13F report. An amateur investor pointed out that the firm typically files its quarterly holdings report within a one to two-day window of Nov. 14 over the past decade. This time, it chose to file it two weeks ahead of the normal schedule and on the day of Palantir’s earnings report.

Palantir Stock Bounces Back

Despite the broader market retreat last Friday, Palantir stock rose 1.65% and it is up 3.75% in overnight trading. The stock hit an all-time high of $207.52 on Nov. 3, ahead of the earnings report, which was released after the market closed.

On Stocktwits, retail sentiment toward Palantir stock remained ‘extremely bullish’ as of early Monday, and the message volume on the stream was ‘extremely high.’

A bullish user called for the stock to move back to $200.

Another user said Burry’s motive was to manipulate retail traders into following him down so he could cover.

Sell-side analysts are positioned for a modest gain following Palantir’s recent weakness. The one-year average analysts’ price target for Palantir stock is $181.83, according to Koyfin. This implied 2% upside from the stock’s Friday closing price of $177.93.

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

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