Palantir stock plunges after 'Big Short' investor Michael Burry says Anthropic is eating its lunch

"Big Short" capitalist Michael Burry has agelong been a contrarian — and present he's picking bones with Palantir Technologies (PLTR).

In a characteristically blunt station connected X this week, Burry claimed that AI startup Anthropic (ANTH.PVT) is efficaciously "eating Palantir's lunch." The Scion Asset Management laminitis has since deleted the post, but Palantir banal fell astir 7% pursuing the bold proclamation.

For the Street, the interest isn't a societal media post, but the circumstantial information Burry cited. He pointed to Anthropic's explosive growth, noting its ascent from $9 cardinal to $30 cardinal successful yearly recurring gross (ARR) successful conscionable months. That's impervious that businesses are pivoting toward "easier, cheaper, [and more] intuitive" solutions, helium said.

This isn't a caller crusade for Burry. He has been consistently bearish connected Palantir. Around September 2025, helium disclosed a important abbreviated presumption done long-dated enactment options connected the company, forecasting a multiyear decline.

"PLTR tin person government, which is debased borderline and small," Burry wrote successful the deleted post, noting that portion Anthropic is scaling astatine lightning speed, "it took $PLTR 20 years to get to $5 Billion."

Burry's thesis rests connected the thought that Palantir is little of a high-growth tech steadfast and much of a low-margin consulting business. He argues that Palantir's exemplary relies connected sending its ain staff, known arsenic Forward Deployed Engineers (FDE), to unrecorded and enactment wrong a customer's bureau for months astatine a clip to support its systems. According to Palantir's 10-K filing, these deployments are often categorized nether "professional services," a tier successful which the institution fundamentally charges for quality labor, alternatively than conscionable a product.

In contrast, Anthropic — the creator of Claude — offers a plug-and-play API that allows companies to integrate AI quality astir instantly.

Technically, the 2 companies inhabit antithetic niches successful the tech ecosystem. Palantir serves arsenic a secure, operational level for organizations specified arsenic the Department of Defense (DoD) and large wellness systems. Anthropic provides the reasoning motor that powers the existent endeavor workflows.

But Burry argued that arsenic the marketplace moves toward nonstop relationships with AI exemplary providers, Palantir's deficiency of proprietary AI bundle makes it vulnerable.

That vulnerability was thrust into the spotlight successful aboriginal March. Following a quality implicit information guardrails betwixt Anthropic and the Pentagon, the Trump medication issued an contiguous prohibition connected the AI lab. This forced national contractors similar Palantir to purge the startup from their systems. Reuters reported Palantir was efficaciously ordered to region Anthropic's Claude AI from its Maven Smart Systems and rebuild parts of the platform.