Michael Burry Slams AI Darlings -- Calls Palantir and OpenAI 'Overhyped Bubbles'

Michael Burry (Trades, Portfolio) drew sharp comparisons between today's biggest AI names and the early internet era in a Sunday post on X, adding fresh debate to tech valuations.

Burry said OpenAI may face a trajectory similar to Netscape, the 1990s browser pioneer that soared after its blockbuster IPO but struggled to maintain an edge. He noted that even a potential $1 trillion valuation and a $60 billion raise might not be enough to avoid that outcome.

He also compared Palantir PLTR to DiamondCluster, a consulting firm that briefly surged during the dot-com boom before ultimately being acquired by PricewaterhouseCoopers for about $380 million.

Burry added that revenue expectations for subscription platforms may be overstated, pointing out that most Substack users remain on free tiers.

His comments add a cautionary tone to an AI market that has seen rapid gains, prompting investors to revisit how much growth is already priced into leading tech names.