Michael Burry, who famously shorted the US housing market before its collapse in 2008, has bet over $1 billion that the share prices of AI chipmaker Nvidia and software company Palantir will fall — making a similar play, in other words, on the prediction that the AI industry will collapse.

According to the Securities and Exchange Commission filings, his fund, Scion Asset Management, bought $187.6 million in puts on Nvidia and $912 million in puts on Palantir, as CNN reports.

Burry similarly made a long-term $1 billion bet from 2005 onwards against the US mortgage market, anticipating its collapse. His fund rose a whopping 489 percent when the market did subsequently fall apart in 2008.

It’s a major vote of no confidence in the AI industry, highlighting growing concerns that the sector is growing into an enormous bubble that could take the US economy with it if it were to lead to a crash.

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