Michael Burry, the investor portrayed in The Big Short, disclosed bearish put-option positions linked to Palantir and NVIDIA. The filing showed about $1.1 billion in underlying-share value—but that does not mean he spent $1.1 billion betting against artificial intelligence.
The disclosure is also not proof that Burry shorted the entire AI industry or that a crash is imminent. It is a regulatory snapshot of Scion Asset Management’s holdings on September 30, 2025, filed with the SEC on November 3.
What Burry’s filing actually showed
Scion’s Form 13F reported long put positions tied to two companies:
| Company | Underlying shares represented | 13F-reported value |
|---|---|---|
| Palantir | 5 million shares | Approximately $912.1 million |
| NVIDIA | 1 million shares | Approximately $186.6 million |
| Total | 6 million shares | Approximately $1.1 billion |
A put option generally increases in value when the underlying stock falls. That makes these positions bearish on the two stocks, at least in the form reported. NVIDIA is a leading supplier of AI chips, while Palantir sells enterprise and defense software with AI-related products. Those choices explain why commentators described the trade as a wager against an AI bubble.
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But the SEC filing itself does not say that Burry expected the whole AI sector to collapse. It identifies securities and option positions; it does not explain the investment thesis, whether the positions were hedges, or what outcome Scion expected.
Why “bet $1 billion” is misleading
Form 13F reporting rules make option values easy to misunderstand. For certain options, including long puts, managers report the number of shares underlying the contracts and the value of those shares—not necessarily the amount paid for the options.
In practical terms, the filing’s $912.1 million Palantir figure was an exposure measure based on 5 million underlying shares. It was not a receipt showing that Scion paid $912.1 million for the puts.
Burry later said the Palantir position consisted of 50,000 put contracts covering 5 million shares and that he paid roughly $9.2 million for those options. Reports also identified the puts as having a $50 strike price and a 2027 expiration, although those details were not included in the original 13F.
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That distinction matters for anyone reading headlines about options:
- Underlying value: the stock value represented by the contracts, used for the 13F report.
- Premium: the price paid to buy the options.
- Maximum loss for a purchased put: generally the premium paid, if the option expires worthless.
- Potential payoff: dependent on the strike price, expiration date, stock price, and premium.
So the headline number illustrates the scale of the stocks covered by the contracts, not necessarily Burry’s cash at risk. The actual premium for the NVIDIA puts was not disclosed in the 13F.
How a purchased put works
Suppose an investor buys a put with a $50 strike price. The option gives the buyer the right, but not the obligation, to sell shares at $50 before or at expiration, depending on the contract terms.
- If the stock remains above $50 at expiration, the put may expire worthless. The buyer can lose the premium paid.
- If the stock falls below $50, the put can become valuable because it provides the right to sell above the market price.
- The option may also gain value before expiration because of changes in the stock price, time remaining, and implied volatility.
This is different from simply short-selling shares. A short seller borrows stock and sells it, then hopes to buy it back at a lower price. A put buyer has defined downside—the premium—although the option can still lose value quickly through time decay or a decline in implied volatility.
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What the filing does not tell investors
A 13F is a delayed quarterly report, not a live portfolio feed. This filing described Scion’s reported positions as of September 30, 2025. It was filed more than a month later, and the portfolio could have changed before the public saw it.
The original filing did not disclose:
- the options’ strike prices;
- their expiration dates;
- the premiums paid;
- whether the puts were intended as hedges;
- whether Scion sold, rolled, or adjusted them later; or
- the fund’s complete net exposure across positions that are not reported on Form 13F.
The SEC also notes that Form 13F reports certain long positions but does not provide a complete picture of written, or short, option positions. That means a public filing may not reveal every part of a fund’s strategy.
Is Burry predicting an AI crash?
His trade is consistent with a bearish view on NVIDIA and Palantir valuations, but it does not establish a timetable. Buying puts can express a direct bearish opinion, protect other holdings, or create a limited-risk position around an expected period of volatility.
Burry had publicly warned about bubbles, writing: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.” That message, combined with the two put positions, led to the AI-bubble interpretation.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchPalantir CEO Alex Karp rejected that argument and called it “batsh*t crazy,” pointing to NVIDIA and Palantir’s substantial AI-related businesses. That disagreement highlights the central investment question: are the companies’ future earnings likely to justify their market valuations? A stock can have real revenue and still be priced too optimistically—or continue rising despite expensive valuation metrics.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can investors copy Burry’s trade?
They should be cautious about treating a 13F as an instruction to buy or sell. By the time the filing appears, the reported position may be weeks old. More importantly, an individual investor generally cannot know the option premium, expiration, hedge structure, or the rest of the portfolio.
Options also have risks that do not apply in the same way to ordinary shares. A correct long-term view can still produce a loss if the stock does not fall far enough before expiration. Volatility changes can reduce an option’s price, and time decay works against the buyer as expiration approaches.
There is an additional reporting limitation here. Scion Asset Management’s SEC registration was listed as terminated on November 10, 2025. Burry said he remained active in markets, but deregistration reduced the same type of ongoing public reporting that investors could use to track the firm.
FAQ
Did Michael Burry spend $1 billion on AI puts?
No. Scion’s 13F reported put positions representing approximately $1.1 billion in underlying shares. Burry later said he paid about $9.2 million for the Palantir puts; the filing did not disclose the premium for the NVIDIA position.
Which stocks did Burry bet against?
The filing showed long puts tied to Palantir and NVIDIA. It did not show a short position against the entire AI industry.
What is a put option?
A purchased put gives the buyer the right, but not the obligation, to sell a stock at a specified strike price. It can gain value when the stock falls, but it can expire worthless and lose the premium paid.
Does Burry still hold these positions?
The filing only established the positions as of September 30, 2025. It did not prove they remained open after that date, and later trading activity was harder to track after Scion’s registration terminated.
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The Bottom Line
Burry disclosed bearish puts on NVIDIA and Palantir, with the SEC filing assigning them roughly $1.1 billion of underlying-share value. The more useful interpretation is not “he spent $1 billion on an AI crash.” It is that he took a potentially limited-loss bearish position against two highly valued, AI-associated companies. The filing was delayed and incomplete, so it cannot tell investors whether the trade remains open, how much Burry risked overall, or whether the AI bubble thesis will be right.
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