Professional investor Michael Burry, who is known for being the main inspiration behind the film The Big Short has placed roughly $1 billion in put options against Palantir and NVIDIA, now considered his official bet against the AI boom.
The filing also revealed Scion was bullish on two companies: Halliburton Co and Pfizer Inc, with call options.
The Big Short is a 2015 film starring Christian Bale in the main lead as Michael Burry, depicting the crash of the U.S. housing market and world economy at large during 2008-2009.
While multiple entrepreneurs and CEOs who have investments in AI through their companies are split on the issue of whether AI is now in a bubble or not—Jeff Bezos, Bill Gates, Cathie Wood, Jamie Dimon, and others have said its innovation will leave a long-term positive impact on technology and industry.
On the other hand, financial institutions such as the Bank of England have warned of extremely high valuations, which could lead to a market correction soon, spelling trouble for stock markets.