“I now have 50 puts with a strike price of June 17, 2027 and 100 puts with a strike price of December 19, 2026. I am not selling these today,” Bury wrote in a Substack post on Friday. He started betting against the company last year.

His comments came after Trump praised the company for its “war-fighting capabilities and equipment” amid the country’s war with Iran in the Middle East. “Palantir Technologies (PLTR) has proven to have great war-fighting capabilities and equipment. Just ask our enemies,” he wrote in a post on his social media platform Truth Social.

According to the New York Times, Palantir is a data analytics company co-founded by billionaire investor and Trump supporter and Republican megadonor Peter Thiel. Palantir’s final quarterly report for 2024 mentioned that the company received $1.2 billion from the US government last year.

Bury recently argued that Anthropic is overtaking Palantir in enterprise AI. He claimed that Anthropic would have captured about 73% of new enterprise AI spending. The figure alone was enough to shake confidence. He also showed a major weakness. Palantir still relies heavily on government contracts. It has lower margins compared to commercial AI deals. Although Bury later deleted the post, the damage was already done.

Palantir stock is trading at a very high valuation multiple. Estimates suggest around 100x to 235x earnings depending on the metric used. That’s well above the sector average, which sits close to 20x. The stock has fallen more than 16% in a month.

Amid fears that artificial intelligence is just a bubble, billionaire investor Howard Marks said earlier this year that it is very real and capable of a lot of work. However, it is inconclusive whether investment in AI will be profitable.

“Since we don’t fully know the business potential of AI or its impact on profitability, this question cannot be answered… There is certainly a lot of excitement for AI businesses. We will know in 10 years if the resulting profits justify it,” he said in his latest memo to Oaktree clients.

The co-founder and co-chairman of Oaktree Capital Management noted that so-called hyperscalers, for whom AI is an important part of the business, may be overvalued or undervalued, but it’s unlikely that today’s valuations will prove “extremely devastating” for hugely profitable companies like Microsoft, Amazon and Google.

The billionaire investor said the question remains whether the intensity of spending on AI infrastructure is too much. He asked the AI ​​chatbot Cloud, which responded that since the current demand for AI outstrips the supply, the investment on infrastructure is not high. However, Marks said this argument does not take into account all the infrastructure building that is already in place, and there is also the possibility that demand growth may slow or that infrastructure building may outpace it.

Today’s AI advancements are just the beginning…

Marks noted that what we see today is just the beginning in terms of rapidly advancing AI technology. “I would say its potential today is under-estimated rather than over-estimated. However, that’s not the same as saying AI investments are on the bargain counter or even reasonably priced,” he said in his latest memo to Oaktree clients.

However, market experts said no one can say for sure whether this is a bubble. Hence, he would advise people that one should go all in without accepting that they face the risk of ruin if things go badly.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)