Michael Burry warns Anthropic is eating Palantir's lunch as stock plunges 6% amid AI rivalry

Michael Burry Warning on PLTR Triggers Sharp Market Reaction

Palantir shares tumbled nearly 6% in a single session after Michael Burry, the investor famous for predicting the 2008 financial crisis, issued a stark warning about the company's competitive position in the AI market 2

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. The Big Short investor disclosed a sizable bearish stance through long-dated put options that expire in 2027, covering approximately five million shares 1

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. His central thesis frames Palantir as a systems integrator that "has no real AI software of its own," relying instead on foundation models developed by others 1

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. The Palantir stock decline extended into after-hours trading, with shares closing at $130.54 before slipping another 0.33% 3

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Anthropic Eating Palantir's Lunch Claims Spark Debate

Burry's most provocative claim centers on Anthropic's rapid ascent in enterprise AI competition. "Anthropic is eating $PLTR Palantir's lunch," he wrote in a now-deleted post on X, arguing that the AI startup is capturing the majority share of new enterprise spending 3

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. He cited Anthropic's reported revenue run-rate surge from roughly $9 billion to $30 billion in a short span, driven by what he described as a cheaper, more intuitive solution for businesses 3

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. Data from Ramp indicates that Anthropic is securing close to 70% of new enterprise AI spending 3

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. A March 2026 study showed that one in four businesses connected to Ramp now uses Anthropic services, compared to just one in 25 a year ago 2

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. This rapid adoption curve reflects strong enterprise uptake of Claude AI models, positioning Anthropic as a formidable competitor in the market share battle.

Pentagon Supply-Chain Risk Designation Complicates Landscape

The enterprise AI competition took an unexpected turn when the Trump administration designated Anthropic as a Pentagon supply-chain risk after the company declined to relax safeguards on its Claude chatbot for applications like surveillance or autonomous weapons 3

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. The order cascaded to federal contractors, with Palantir compelled to excise Claude from Maven Smart Systems, the company's digital assistant for military commanders, and undertake a rebuild of affected sections of the platform 1

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. A federal appeals court in Washington, D.C. refused to temporarily halt the Pentagon's designation 3

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. This development prompted Wedbush analyst Dan Ives and Futurum CEO Daniel Newman to question Burry's thesis, with Newman noting that while Anthropic is strong, it is currently blacklisted by the Pentagon, whereas the U.S. government remains Palantir's largest customer 3

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Palantir's High Valuation Under Scrutiny

Palantir's high valuation has become a focal point in the debate over its future prospects. PLTR currently trades at a forward P/E ratio of approximately 115x, far exceeding the sector median of around 21x and the S&P 500 average near 20-22x 2

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. This stock valuation gap makes PLTR highly sensitive to negative commentary, explaining why the current decline appears sharp rather than gradual 2

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. Despite the stock rallying over 150% in the past year driven by AI hype, Burry's remarks acted as a catalyst, accelerating profit-booking across institutional and retail portfolios 2

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. Analysts argue that such a premium leaves little room for execution errors, with even minor slowdowns in revenue growth potentially triggering outsized declines.

Divergent Analyst Opinions on Reliance on Third-Party AI Models

The controversy over Palantir's reliance on third-party AI models has divided Wall Street. Burry has repeatedly criticized Palantir as a low-margin, consulting-heavy business that relies on external foundation models rather than building its own foundational technology 3

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. Dan Ives of Wedbush forcefully rejected this narrative, stating "We believe the take that Anthropic is eating PLTR's lunch ... is the wrong take and fictional narrative," adding that Palantir remains "at the epicenter of leaders in the AI Revolution" 3

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. Rosenblatt's John McPeake reiterated a bullish outlook, assigning a $200 price target to Palantir, highlighting potential upside from large-scale government contracts including the "Golden Dome" missile defense initiative, which could generate billions in revenue through 2028 2

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. Despite the stock decline, Palantir reported revenue growth of around 20-25% year-over-year, with its commercial segment growing faster, crossing 30% in some quarters 2

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. The company also achieved consistent profitability under GAAP metrics with steadily improving operating margins, suggesting the current decline is not driven by immediate financial weakness 2

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. According to Benzinga Edge Stock Rankings, Palantir is showing downward momentum across short, medium and long-term periods, while its Growth score ranks in the 98th percentile 3

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