Michael Burry Is Wrong About Palantir and Anthropic

Palantir took a bit of a tumble last week when Michael Burry — who’s famous for shorting the housing market ahead of the 2008 financial crisis — once again came out to blast the company.

He’s been doing this for months — and his motives are pretty obvious.

Michael Burry is a short-seller.

He has been shorting Palantir since last year and he profits when its stock goes down.

For that reason, alone, nothing he says about Palantir should be taken seriously.

His criticisms are entirely self-serving.

Just remember that if you see him in the news.

Palantir, meanwhile, is doing just fine.

In just the past few weeks, it established its Maven Smart System as an official Pentagon program of record and signed a consolidated enterprise agreement with the U.S. Army that’s worth about $10 billion.

And that’s just the beginning. Because what that $10 billion deal really signals is a path to deeper involvement with major military initiatives like the JADC2 and Golden Dome.

JADC2 stands for Joint All-Domain Command and Control — a digital web that aims to connect all of the military’s intelligence sources. 

It means seamless data-sharing between all of America’s intelligence sources, from satellites, to fighter jets, to radar stations, ships, sonar buoys, and even troops and human assets on the ground.

However, all of that data will have to be processed, analyzed, and, ultimately, distributed in a way that is digestible.

It will require a powerful AI system to accelerate and automate analysis. 

And it will have to give compact, straightforward, actionable solutions to military personnel — from grunts to generals, and, ultimately, the president.

The same is true for the Golden Dome as well.

The sprawling missile shield will combine intelligence assets from air, land, sea, and space. 

But again, that information will have to be collected, shared, and analyzed by AI.

These are exactly the types of tasks Palantir excels at. 

Indeed, Palantir’s systems have served as a central tool in the U.S. and Israeli targeting operations for years now, compressing the “kill chain” from days to minutes and enabling a tempo of attacks unprecedented in modern warfare. 

That’s why the Pentagon’s Chief Digital and AI Officer Cameron Stanley recently said in a recent tech demonstration, the Department of War is deploying Palantir’s Maven Smart System across the board.

And it’s why President Trump himself came out in defense of the company amid its recent stock decline.

“Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment. Just ask our enemies!!!” Trump wrote in a Truth Social post.

However, while Palantir is firmly entrenched in America’s war room, Anthropic literally just got black listed by the Department of Defense.

Now, apparently, the White House is in discussions to bring Anthropic back into the fold. And honestly, they should.

Anthropic has an outstanding AI platform and early reviews of its new Mythos — which has been released for testing to a small group of organizations — is already making a lot of waves.

But at the same time, Anthropic is also being criticized for performance issues related to its Claude tool.

Ironically, the Pentagon’s blacklisting of Claude drew more attention to it. But now the added strain of more users is causing performance issues.

Effectively, Anthropic only has so much data center capacity and is running short of computing resources after adoption of its products took off these past few months.

So regardless of what Michael Burry or anyone else says, Anthropic isn’t displacing Palantir anytime soon.

There’s plenty of room for both, and I think we’ll see that when Palantir reports earnings on May 4.

That’s what investors should be paying attention to — not critics and naysayers who have been skeptical of Palantir since the very beginning.

You might also consider scoping out my top Golden Dome play, which is also poised to benefit considerably from President Trump’s $1.5 trillion budget request.