1 week ago
Burry Questions Palantir’s AI Model as Ives Predicts Explosive Growth
Michael Burry thinks investors may be too excited about Palantir because of the AI boom.
He says Palantir’s finances look more like a consulting company than a regular subscription software company.
He is concerned that customers are taking longer to pay their bills.
He also questions the company’s stock payments, tax benefits and spending on a private aircraft.
Burry believes demand could weaken if the AI excitement fades.
Dan Ives has the opposite opinion.
Ives thinks Palantir is one of the best companies using AI and expects its business to grow quickly.
He predicts Palantir could eventually be worth one trillion dollars.
Palantir had not publicly responded to Burry’s criticisms when the article was published.
Michael Burry says Palantir’s rising accounts receivable and longer collection times resemble a consulting business more than subscription software.
Burry argues AI FOMO is driving customer demand and compares Palantir’s prospects with technology consultancies from the dot-com era.
He also questions Palantir’s stock-based compensation, tax benefits, customer concentration and $17.2 million in 2025 executive-aircraft expenses.
Wedbush analyst Dan Ives calls Palantir the “gold standard” for AI use cases and expects it could become a trillion-dollar company within two to three years.
Ives projects strong growth in Palantir’s US commercial business and free cash flow, while Palantir had not responded to the criticism at the time of publication.
- Who
- Michael Burry criticized Palantir Technologies, while Wedbush Securities analyst Dan Ives offered a bullish outlook; Palantir CEO Alex Karp was also mentioned.
- What
- The two investors presented sharply different views of Palantir’s business model, valuation and future growth.
- Where
- The discussion concerns Palantir’s operations, including its United States commercial business; Ives spoke with CNBC.
- When
- Burry’s claims concern financial results through 2025; Ives’s comments were reported from August 27, 2026, with a related X post dated May 5, 2026.
- Why
- Burry believes AI enthusiasm is masking consulting-like financial patterns and risks, while Ives expects accelerating AI adoption to drive major growth.
Burry’s Bearish View
Ives’s Bullish View
Business model
Burry’s Bearish View
Palantir’s financial patterns look more like project-based consulting, such as Accenture, than subscription software companies such as Salesforce and ServiceNow.
Ives’s Bullish View
Palantir is a leading AI software company, and Ives calls it the “gold standard” for AI use cases.
AI demand
Burry’s Bearish View
AI FOMO may be causing companies to hire Palantir because they fear missing the AI boom; demand could weaken if the excitement fades.
Ives’s Bullish View
AI adoption, government spending, enterprise use and cybersecurity trends are creating a sustained growth opportunity for Palantir.
Valuation and growth
Burry’s Bearish View
Burry believes Palantir is valued too highly, could see revenue shrink and might eventually fall below a $100 billion market value.
Ives’s Bullish View
Ives expects Palantir to become a trillion-dollar company within two to three years, supported by growth in commercial sales and free cash flow.
Key facts
- Palantir platforms
- Gotham, Foundry, Apollo and the Artificial Intelligence Platform (AIP)
- Accounts receivable
- Burry said accounts receivable grew faster than revenue in nine of the 12 quarters through the fourth quarter of 2025.
- Days sales outstanding
- Burry said average DSO increased from 35 days in 2020 to 66 days in 2025, while year-end DSO rose from 52 to 85 days.
- Customer concentration
- Burry said one unnamed customer represented 26% of Palantir’s accounts receivable in 2024 and 25% in 2025, while contributing less than 10% of revenue.
- Executive aircraft expenses
- Palantir reported $17.2 million in executive-aircraft expenses in 2025, compared with $7.7 million in 2024.
- Ives growth forecast
- Ives expects Palantir’s US commercial business to approach a roughly $1 billion trajectory over the next 12 months.
- Potential valuation
- Ives said Palantir could become a trillion-dollar company within two to three years; Burry said its market value could eventually fall below $100 billion.
Quotes
Michael Burry
Investor known for predicting the 2008 housing crash and criticizing Palantir
“Palantir’s strong results validate accelerating AI demand, with government spending, enterprise adoption and cybersecurity trends driving a sustained bull market in tech.”
financialexpress.com
“The facts have not changed. Yes, FOMO is pushing companies to hire Palantir for now, but its competitive position gets more dire almost by the day.”
financialexpress.com
Sources
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