Michael Burry, the famous short seller who bet against the US housing market before its collapse in 2008, recently revealed that he would liquidate his hedge fund Scion Asset Management due to timing issues. He had placed bets worth over $1 billion against AI chipmaker Nvidia and software company Palantir, but after the AI industry’s valuation soared, Burry realized his approach was off. Valuations of AI companies are now up 126% year-over-year, making it difficult for short sellers to succeed. Other famous traders have also closed shop due to growing hype in the industry. With his hedge fund liquidated, many questions remain about Burry’s next move and whether he will continue his quest to short the AI bubble on his own terms.
Source: https://futurism.com/artificial-intelligence/michael-burry-short-ai-bubble-deregister