Michael Burry, who shorted the housing market in 2008, has bet over $1 billion that the shares of AI companies Nvidia and Palantir will fall.
  • silasmariner@programming.devEnglish
    21·
    4 hours ago

    I think the idea is that, whilst shorting, you get squeezed. The question is not ‘if’ but ‘when’ and if it takes too long and you’re $1B deep you can lose your shirt

    • DragonTypeWyvern@midwest.socialEnglish
      2·
      2 hours ago

      Yep. The market can stay irrational etc

      The thing is though as long as it goes down that’s usually all you need. You don’t need a total collapse.

      • sugar_in_your_tea@sh.itjust.worksEnglish
        2·
        1 hour ago

        That’s the thing though, options are generally relatively short in duration, with most being a few months. The longest options are around 1-2 years out.

        Could AI stay keep its hype for 1-2 years? Probably. Will it? Who knows!