"Step aside, Elon Musk vs. Sam Altman. There's a new beef in the business world, and it centers on the stock market's biggest question: Is the AI boom a bubble? Michael Burry of "The Big Short" fame and Palantir CEO Alex Karp have been trading barbs after the investor revealed he bet on Palantir's stock to plunge last quarter. The pair's clash boils down to a fundamental difference in views that's a microcosm of the market's big divide."
"Burry's assessment is that AI is a bubble, and the valuations of companies like Palantir are way out of whack. Karp's perspective is that Palantir is pioneering a technological revolution, its stock gains should be celebrated for enriching everyday Americans, and betting on his company to fail is just plain wrong. The wider investing community is similarly split between those who say current valuations are justified because AI will change the world, boost productivity, and supercharge economic growth and corporate profits,"
Michael Burry placed bearish put options against Palantir and Nvidia, signaling a bet that those stocks will fall. Alex Karp responded angrily, framing Palantir as a pioneer driving a technological revolution and arguing its gains benefit everyday Americans. The episode reflects a broader investor split between believers who say AI will transform productivity, growth, and profits and skeptics who warn valuations are overinflated and at risk of collapsing like the dot-com bubble. The dispute contrasts with the Musk–Altman debate over OpenAI and centers on whether current AI investments are justified or speculative excess.
Read at Business Insider
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