Michael Burry, renowned for predicting the 2008 financial crisis, disclosed significant short positions against AI companies Palantir and Nvidia, causing market volatility. Burry’s hedge fund, Scion Asset Management, reported put options worth approximately $187 million against Nvidia and $912 million against Palantir as of September 30. Despite Palantir’s strong earnings and raised revenue outlook, its shares fell nearly 7% early Tuesday amid valuation concerns. Nvidia’s stock declined over 2% after a year of gains exceeding 50%, amid U.S. restrictions on chip sales to China. Palantir CEO Alex Karp criticized Burry, calling his bets 'crazy' and accusing short sellers of market manipulation, especially as Palantir’s stock surged 173% this year. Burry’s actions reflect broader market warnings from Wall Street leaders about potential corrections over inflated valuations in tech and AI sectors. The controversy highlights tensions between contrarian investors and tech executives over market valuations and short-selling tactics.