---
title: "‘Big Short’ investor sparks global sell-off as AI bubble fears grow"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-11-04T16:08:12+00:00"
modified: "2025-11-04T16:08:12+00:00"
date: 2025-11-04
canonical: "https://www.share-talk.com/big-short-investor-sparks-global-sell-off-as-ai-bubble-fears-grow/"
category: "B2B"
categories: ["B2B", "Blogs", "Business & Support Services", "Technology", "Technology, Media & Telecoms"]
tags: ["Amazon", "ARTIFICIAL INTELLIGENCE", "Bitcoin", "BTC", "Bubble", "chipmaker", "FRANCE", "GERMANY", "Japan", "Michael Burry", "Nvidia", "OpenAI", "Palantir", "short positions", "The Big Short"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/11/The-Big-Short-_.webp?fit=1200%2C800&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# ‘Big Short’ investor sparks global sell-off as AI bubble fears grow

**Published:** November 4, 2025
**Author:** sharetalk
**Categories:** B2B, Blogs, Business & Support Services, Technology, Technology, Media & Telecoms
**Tags:** Amazon, ARTIFICIAL INTELLIGENCE, Bitcoin, BTC, Bubble, chipmaker, FRANCE, GERMANY, Japan, Michael Burry, Nvidia, OpenAI, Palantir, short positions, The Big Short
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/11/The-Big-Short-_.webp?fit=1200%2C800&quality=80&ssl=1)

---

**Global stock markets** tumbled on Tuesday after reports that **Michael Burry**, the investor made famous by *The Big Short*, has placed a **$1.1 billion (£840 million) bet** against major **artificial intelligence stocks**, fuelling fears that an **AI-driven market bubble** may be nearing its peak.

The **S&P 500** and **Nasdaq Composite** opened sharply lower in New York, while share indexes in **France, Germany, and Japan** each **fell more than 1%**, mirroring a global **risk-off shift** among investors.

[Bitcoin](https://www.share-talk.com/bitcoin-falls-to-five-month-low-as-crypto-market-struggles-to-recover/) also slid to its **lowest level since June**, extending recent declines across speculative assets.

Regulatory filings revealed that **Burry’s hedge fund**, Scion Asset Management, has taken **short positions in chipmaker Nvidia** and **software company Palantir** — two of the leading beneficiaries of the year’s AI boom. He stands to make significant gains if their share prices fall.

The disclosure coincided with an **8.3% drop in Palantir** during premarket trading amid concerns that its **third-quarter results** signalled slowing momentum after a **400% surge over the past year**.

**Nvidia** also reversed earlier gains, **slipping 1.7%**, while **Amazon** fell **1.3%**, giving back some of Monday’s rally sparked by its **$38 billion cloud deal with OpenAI**.

**Keith Buchanan**, senior portfolio manager at **Globalt Investments**, said:

> “The market’s been moving higher as warranted from an earnings standpoint, but at some point it seemed like it was positioning for a risk-off pull-back even on the slightest disappointment.”

Analysts warned that valuations across U.S. tech and AI names have become **stretched**, raising the risk of a **correction reminiscent of the dot-com bust of 2000**.

---

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