Nvidia Invests $1B, Palantir Surges, Amazon, Google Face Burry Bet

The artificial intelligence sector is experiencing a period of intense investor scrutiny and significant strategic shifts, marked by both bearish bets and massive new partnerships. Michael Burry, the investor known as the "Big Short," recently placed a substantial $1.1 billion bet against leading AI stocks, specifically targeting Nvidia and Palantir. Burry's firm, Scion Asset Management, believes the current rally in AI-linked stocks is overvalued, drawing parallels to the dot-com bubble and pointing to potential risks like slowing cloud growth at major tech companies such as Amazon, Alphabet, and Microsoft. This bearish sentiment contributed to a wavering in AI stocks and a broader sell-off on Wall Street, with the Nasdaq Composite dropping almost 1%. Bitcoin's price also fell, declining 6% over two days to $103,952, as investors reduced risk due to concerns about high AI stock valuations, with some analysts warning it could fall below $100,000. Despite these market jitters, the AI industry continues to see significant investment and growth. OpenAI announced a massive $38 billion strategic partnership with Amazon Web Services (AWS), a move that diversifies OpenAI's cloud infrastructure away from its previous 100% reliance on Microsoft. This deal is a major win for Amazon, boosting AWS's leadership in AI and causing Amazon shares to rise 4-5%. The agreement also benefits Nvidia, as OpenAI will gain access to hundreds of thousands of NVIDIA GPUs through AWS. Oracle is also positioned as a quiet winner in the AI boom, with Morgan Stanley analysts predicting its stock could surge 50% to $144, driven by strong cloud growth and partnerships with NVIDIA and Microsoft. Individual AI companies are showing varied performance. Palantir, for instance, reported strong third-quarter earnings with revenue of $1.181 billion and raised its full-year outlook to $4.396-$4.400 billion. Its U.S. commercial revenue jumped an impressive 121% to $397 million, a growth CEO Alex Karp called "otherworldly." However, investor Cathie Wood of ARK Invest sold $7.69 million worth of Palantir stock on November 3, 2025, following its significant year-to-date surge of over 170%. Nvidia shares are also up over 50% this year. Meanwhile, Rambus (RMBS), an AI data-center company, saw its stock vault 117% but is now testing support after a weaker sales forecast caused a nearly 9% drop on October 28. Beyond the established players, AI startups are securing substantial funding. FinTech startup Natural raised $9.8 million, neuro-symbolic AI company Augmented Intelligence secured $20 million (bringing its total to $60 million), and Allie AI, focusing on optimizing food factories, raised a $5.2 million seed round. Notably, Nvidia is investing up to $1 billion in Poolside, a Paris-based startup developing AI models for software creation, as part of a larger $2 billion funding round. Additionally, Crusoe raised $1.38 billion to expand its AI data center operations, utilizing natural gas and renewable energy.

Key Takeaways

• Michael Burry, the "Big Short" investor, placed a $1.1 billion bet against leading AI stocks, specifically Nvidia and Palantir, citing concerns about overvaluation and slowing cloud growth.
• OpenAI entered a $38 billion strategic partnership with Amazon Web Services (AWS), diversifying its cloud infrastructure from Microsoft and providing OpenAI access to hundreds of thousands of NVIDIA GPUs.
• Amazon shares rose 4-5% following the OpenAI AWS deal, strengthening AWS's position in the AI cloud market.
• Palantir reported strong Q3 earnings with $1.181 billion in revenue and a 121% jump in U.S. commercial revenue, leading Cathie Wood to sell $7.69 million in Palantir stock.
• Bitcoin's price dropped 6% over two days to $103,952, as investors reduced risk due to worries about high AI stock valuations.
• Nvidia is investing up to $1 billion in Poolside, a Paris-based AI startup, as part of a $2 billion funding round, in addition to benefiting from the OpenAI-AWS deal.
• Oracle's stock could surge 50% to a $144 target, according to Morgan Stanley, driven by its AI and cloud growth and partnerships with NVIDIA and Microsoft.
• Several AI startups secured significant funding, including Natural ($9.8 million), Augmented Intelligence ($20 million), Allie AI ($5.2 million seed), and Crusoe ($1.38 billion).
• Michael Burry warned of potential risks like slowing cloud growth at Amazon, Alphabet, and Microsoft, comparing the current tech spending surge to the dot-com bubble.
• Rambus (RMBS) stock jumped 117% but experienced a nearly 9% drop after a weaker sales forecast following its third-quarter results.

Big Short Investor Bets Against Palantir and Nvidia AI Stocks

A prominent investor known as the "Big Short" placed bets against AI stocks like Palantir and Nvidia. This move caused AI stocks to waver on Tuesday. Palantir's CEO Alex Karp reacted strongly to the short-selling. This action led to a sell-off on Wall Street.

Michael Burry Bets $1.1 Billion Against Top AI Stocks

Michael Burry, known for predicting the 2007 credit crunch, placed a $1.1 billion bet against leading AI stocks. He specifically targeted Nvidia and Palantir. This action comes as Wall Street bank chiefs warn of a possible 10 percent market pullback.

Bitcoin Price Drops Amid Concerns Over AI Stock Market

Bitcoin's price continued to fall in November, dropping 2.5% today and 6% over two days to $103,952. Investors are reducing risk due to worries about the AI stock market, which also saw the Nasdaq Composite drop almost 1%. Compass Point analyst Ed Engel noted that individual investors are not buying the dip as much as before. He warned Bitcoin could fall below $100,000, with support around $95,000, and sees few near-term catalysts. October's usual strong performance for Bitcoin did not happen this year.

Bitcoin Drops as Investors Worry About High AI Stock Prices

Bitcoin's price fell about 6% in the last two days, while Ether dropped nearly 10%. This decline happened as investors grew uneasy about the high value of some artificial intelligence stocks. The Nasdaq Composite, which includes many AI stocks, also fell 1% on Tuesday. Compass Point analyst Ed Engel believes Bitcoin could fall below its $100,000 support level. He noted that October, usually a strong month for Bitcoin, did not see a price increase this year.

Rambus AI Stock Jumps 117 Percent, Now Testing Support

Rambus (RMBS), an AI data-center company, is an IBD 50 Stock To Watch after its stock vaulted 117%. The stock is now testing support at its 21-day moving average. A weaker sales forecast after third-quarter results caused the stock to drop nearly 9% on October 28. During the September-ended quarter, earnings grew 29% to 63 cents per share, though this was a slowdown from previous periods.

Amazon AWS Secures $38 Billion AI Deal With OpenAI

OpenAI announced a massive $38 billion strategic partnership with Amazon Web Services (AWS). This deal helps OpenAI diversify its cloud infrastructure, as it previously relied 100% on Microsoft. The agreement will also benefit Nvidia, as OpenAI will access hundreds of thousands of NVIDIA GPUs through AWS. Amazon shares rose 5% after the announcement, boosting AWS's leadership in AI. AWS began offering OpenAI's open-weight models on Bedrock and SageMaker in August 2025.

Michael Burry Bets Against Nvidia and Palantir AI Stocks

Michael Burry's Scion Asset Management has placed bearish bets against popular AI stocks Nvidia and Palantir. Burry believes the rally in AI-linked stocks is too high. He warns of potential risks like slowing cloud growth and reduced spending at major tech companies. He pointed to slower cloud growth at Amazon, Alphabet, and Microsoft, comparing the current tech spending surge to the dot-com bubble. Nvidia shares are up over 50% this year, and Palantir is up over 170%.

Allie AI Raises $5.2 Million to Optimize Food Factories

Allie AI, a manufacturing intelligence firm based in San Francisco, successfully raised a $5.2 million seed funding round. CEO Alex Sandoval announced that the company focuses on optimizing operations for food and beverage factories. This funding will help food manufacturers quickly process and adapt to disruptions.

AI Startups Secure Billions in New Funding Rounds

Several AI startups received significant funding this week. FinTech startup Natural raised $9.8 million to build payment systems for software agents. Neuro-symbolic AI company Augmented Intelligence secured $20 million, bringing its total funding to $60 million for models that combine neural networks and logic. Nvidia is investing up to $1 billion in Poolside, a Paris-based startup developing AI models for software creation, as part of a $2 billion round. Additionally, Crusoe raised $1.38 billion to expand its AI data center operations, using natural gas and renewable energy.

Oracle Stock May Jump 50 Percent on AI and Cloud Growth

Morgan Stanley analyst Keith Weiss believes Oracle (ORCL) stock could surge 50% from its current price, setting a $144 target. He sees Oracle as a quiet winner in the AI boom, with its cloud computing business showing strong growth. Oracle's cloud backlog and partnerships with NVIDIA and Microsoft position it well for increasing AI demand. The company's acquisition of Cerner is also expected to boost its healthcare cloud offerings. Despite past slower cloud growth and competition, Weiss expects Oracle's cloud revenue to accelerate, creating significant shareholder value.

Cathie Wood Sells $7.69 Million in Palantir AI Stock

Investor Cathie Wood of ARK Invest sold $7.69 million worth of Palantir stock on November 3, 2025, following the company's strong third-quarter earnings. Palantir's stock had already soared over 170% this year and 20% in the past month. Wood's strategy involves selling winning stocks to invest in new opportunities. Palantir reported revenue of $1.181 billion and raised its full-year outlook to $4.396-$4.400 billion. Its U.S. commercial revenue jumped 121% to $397 million, with CEO Alex Karp calling the growth "otherworldly."

Amazon Lands $38 Billion OpenAI Deal Boosting AWS

Amazon shares rose 4% after the company announced a $38 billion cloud computing deal with OpenAI. Under this agreement, OpenAI, the creator of ChatGPT, will use Amazon Web Services (AWS) as its main cloud provider. This is a big win for Amazon, strengthening AWS's leading position in the growing artificial intelligence cloud market. OpenAI had previously relied on Microsoft Azure. Investors should watch ETFs like Amplify Online Retail ETF (ONLN), Technology Select Sector SPDR Fund (XLK), and Vanguard Information Technology ETF (VGT), which hold significant Amazon shares.

Sources

• AI stocks waver as ‘Big Short’ investor bets against Palantir, Nvidia
• Big Short investor places $1.1bn bet against leading AI stocks
• Bitcoin's November sell-off worsens as investors take risk off on worries about the AI trade
• Bitcoin Falls Amid Investor Concerns About Steep AI Valuations
• Rambus Stock: AI Datacenter Play Vaults 117%, Tests Key Level
• Amazon And OpenAI: Yet Another Massive Investment In AI
• Michael Burry’s ‘Big Short’ instincts target AI trade with puts on Nvidia, Palantir
• Exclusive: Manufacturing intelligence firm Allie AI raises $5.2M seed
• From Agentic Payments to AI Infrastructure: This Week’s Startup Funding
• Oracle Stock Could Surge 50% -- Analyst Sees Massive Upside on AI and Cloud Boom
• Cathie Wood unloads $7.69 million in top AI stock
• Amazon Just Landed a $38 Billion OpenAI Deal: Your Signal to Watch 3 ETFs