Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Michael Burry Just Said 7 Words Dismissing AI After Slowdown Fears: "There Is Nothing AI to Slow Down." Should Investors Trust His Nvidia and Palantir Shorts?

Source The Motley Fool

Key Points

Michael Burry recently sold his Nvidia puts, but he still owns Palantir puts.
Several high-profile AI leaders have recently agreed that AI developers should slow down due to the dangers the technology poses.
Burry wrote on social media that their slowdown talk is self-serving.
10 stocks we like better than Nvidia ›

Michael Burry earned his fame by correctly anticipating the 2008 mortgage crisis and shorting the mortgage bond market to make a windfall, as chronicled in the best-selling Michael Lewis book The Big Short and the movie of the same name. He recently closed down his money management fund, but he still provides market commentary for his fans.

This week, he took a shot at artificial intelligence (AI) companies as concerns arise about the idea that the pace of AI development needs to be slowed, saying, "There is nothing AI to slow down."

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Burry has asserted that the AI sector is in a bubble many times, and he put his money where his mouth is with literal puts on Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR). He recently sold his Nvidia position and part of his Palantir position to free up cash, but he retains several short positions in the tech sector. Meanwhile, Wall Street is broadly bullish on both. Should investors trust Burry's negative views?

Should AI slow down?

Recently, there has been a surge in the level of worried talk about the damage that AI could do to human society. The volume has picked up since it was revealed that some AI agents have gone rogue and autonomously hacked external companies' systems in pursuit of their own ends.

Such events have led several high-profile AI developers to warn that the consequences of unchecked AI development could be disastrous, and to call for a slowdown.

Circuit board with computer chip labeled AI.

Image source: Getty Images.

Anthropic CEO Dario Amodei, for example, published a note urging a slowdown, "pacing the rate of capabilities advancement so that risk prevention has time to keep up." OpenAI CEO Sam Altman and SpaceX CEO Elon Musk both chimed in with notes of caution as well.

AI companies like Nvidia and Palantir have benefited from breathtaking advances in AI, and if those technologies were to be exposed as not quite as revolutionary as the world thinks, their stocks could plummet. Nvidia's share price growth has already started to slow down from its previous torrid pace. It's up 13% this year, roughly the same as the S&P 500. It has also become much cheaper, trading at 27 times earnings. Palantir stock is roughly flat year to date, but it's still quite expensive, trading at a P/E ratio of 148.

The pessimist's take

Burry asserts that the call for a development slowdown is a planned move to cover for companies that are slowing down anyway:

Let's all take a moment to understand how self-serving it is for OpenAI, Anthropic and other execs of big hyperscalers to talk of slowing things down.
1. LLMs are not AI and won't be AGI. There is nothing AI to slow down.
2. Competition is coming up fast, slowing benefits...
-- Cassandra Unchained (@michaeljburry) Sept. 14, 2026

This isn't surprising given his previous views on AI, but so far, AI is demonstrating value for users, which is why investors are tolerating all of the AI-related capital expenditures, which Nvidia expects to reach $3 trillion to $4 trillion by 2030.

Burry's been right before, and he made a fortune off his analysis. But he isn't necessarily always right. Should investors trust his analysis here?

Investors should certainly be prepared for any outcome in AI. Whether Burry's right or not, investors should maintain a diversified portfolio and avoid being overly concentrated in AI or any other industry. You don't have to short the AI sector, but you shouldn't bet only on it, either.

Should you buy stock in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*

Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of September 16, 2026.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

US August CPI lands tonight: after a 5.4% PPI shock, will the Fed hike on September 16?US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.

Author Irene Q.

Sep 11, Fri

US August PPI came in at 5.4% year-on-year, above the 5.3% consensus, with core PPI at 4.6%. Traders have pushed the odds of a 25bp Fed hike on September 15-16 to around 70%. Tonight's CPI is the last major inflation print before the decision — here is the full calendar, the consensus numbers, and what a hot versus cool reading would mean for the dollar, yields, gold and stocks.

Brent tests $108 as a key export pipeline stays shut — can the rally clear $110?Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.

Author Irene Q.

Sep 14, Mon

Brent crude rose 2.55% to $106.97 and WTI 2.32% to $102.30 as a major regional export pipeline remained offline with no restart timeline. Front-month backwardation has widened to $5.53 from $3.84 a week ago, European gas is at its highest since December 2022, and one analyst sees $119.48 if talks stall.

Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500 A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Author Suzie

Sep 14, Mon

A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.

Gold falls below $4,300 as higher US yields bolster Fed rate hike bets Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week.

Author FXStreet

Yesterday 01: 23

Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week.

【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve begins The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Author Irene Q.

23 hours ago

The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Popular Symbols