Trump posts support for Palantir as stock plunges after 'Big Short' investor blasted the company

The conflict for AI supremacy has gotten political.

President Trump is defending Palantir Technologies (PTLR) aft "Big Short" capitalist Michael Burry blasted the institution for losing its bundle borderline earlier this week.

In a Truth Social post, the president claims Palantir has "great warfare warring capabilities and equipment." He adjacent dared critics to "just inquire our enemies." Palantir banal jumped pursuing the bold-faced declaration earlier falling again. Year to date, the banal is down astir 30%.

Read much astir Palantir's banal moves and today's marketplace action.

The quarrel implicit Palantir comes soon aft Burry claimed that AI startup Anthropic (ANTH.PVT) had been efficaciously "eating Palantir's lunch."

In an X station that has since been deleted, the Scion Asset Management laminitis pointed to Anthropic's explosive ascent from $9 cardinal to $30 cardinal successful yearly recurring gross (ARR) arsenic grounds that businesses are pivoting toward "easier, cheaper, [and more] intuitive" solutions.

Burry past compared that to Palantir's slow-burn journey, noting that it took the bundle institution 20 years to deed the $5 cardinal mark. According to him, Palantir's government-heavy portfolio acts arsenic a low-margin anchor. Palantir closed Thursday trading down 7%.

This isn't a caller crusade for Burry. The contrarian has been consistently bearish connected Palantir, disclosing a important abbreviated presumption via long-dated enactment options backmost successful September 2025, betting mostly connected a multiyear decline.

At its core, Burry's thesis rests connected the thought that Palantir operates similar a consulting steadfast alternatively than a axenic bundle play. He argues the institution relies excessively heavy connected its forward-deployed engineers (FDE), who often enactment on-site with customers for months to support the system. This makes the concern exemplary hard to standard compared to off-the-shelf AI solutions similar Anthropic's Claude.

Trump's validation, however, shifts the focus. While Anthropic scales rapidly successful the commercialized assemblage — namely done deals specified arsenic a caller multiyear statement with CoreWeave (CRWV) — Palantir is banking connected nationalist security.

With markets astatine the whims of Trump's affectional discernment, Palantir, astatine slightest for now, is successful his bully graces. This stands successful stark opposition to Anthropic, which fell retired of favour successful March aft a quality with the DoD implicit AI information guardrails. The medication has subsequently labeled the AI laboratory a imaginable menace to nationalist security.

Francisco Velasquez is simply a Reporter astatine Yahoo Finance. Follow him connected LinkedIn and X. Story tips? Reach him via email astatine [email protected].