Michael Burry has long been bearish on Palantir, but he recently shared a new take on the market’s AI darling, comparing its prospects to another titan in the space.
Loading audio narration…
Anthropic isn’t publicly traded yet, but it has been at the center of Wall Street’s focus for months after new tools from the market of the Claude chatbot sent software stocks into a tailspin. Burry hasn’t said much about the broader sector, but in a Wednesday X post, he made said he thinks Anthropic is handily beating the competition.
“Anthropic is eating Palantir’s lunch,” Burry said. “That massive boost from $9B to $30B ARR at Anthropic is because Anthropic offers the easier, cheaper, intuitive solution for businesses.”
Palantir stock tumbled the day after Burry’s comments as investors worried about competition from the AI heavyweight. The stock dropped as much as 8% to around $129.30 per share. Shares are down nearly 30% year to date.
Anthropic has already disrupted a slew of other software companies with its AI tools. Its updates have hit shares in legal tech, logistics, and wealth management, among other sectors.
Burry’s comments come just a few months after he announced a short position in Palantir. He had previously expressed skepticism about the broader AI boom, implying that he saw a bubble forming,
Now he seems to think the AI market is shifting, specifically toward “plug and play” models from Anthropic that let companies quickly integrate its AI tools into their businesses.
Burry acknowledged that Palantir’s lucrative government contracts, but noted that he doesn’t think that they give the company an edge. In his view, the real profitability stems from the private sector business that has been the core of Anthropic’s valuation.
“Anthropic’ went from $9B to $30B in months, it took $PLTR 20 years to get to $5 Billion,” Burry added. “[It] is taking 73% of all new enterprise spending.
He cited data from financial operations platform Ramp, pointing to a March 2026 analysis from economist Ara Kharazian, who provided a detailed breakdown of just how much Anthropic’s business has grown recently.
Part of the report highlighted the zero-sum nature of the AI market, showing a surge in businesses flocking to Anthropic at rivals’ expense.
“Nearly one in four businesses on Ramp now pays for Anthropic (a year ago, it was one in 25),” Kharazian wrote. “OpenAI’s 1.5% decline was the largest in any single month for any AI model company since we started tracking business AI adoption.”
He added that the share of companies who opt to pay for Claude before OpenAI has also increased steadily and reached 73% in February.
Burry isn’t the only investor to bet against Palantir recenly. In September, short-seller Andrew Left revealed that he was shorting the stock and told Business Insider he was bullish on Databricks, an AI startup that, like Anthropic, is still privately held.
