Palantir Technologies (NASDAQ:PLTR) and Nebius Group (NASDAQ:NBIS) unveiled a strategic partnership on Tuesday, naming Nebius as Palantir’s preferred sovereign AI infrastructure partner. 

The announcement lands awkwardly for Michael Burry who has disclosed bearish bets against both companies.

Under the deal, Nebius’s AI-native compute and inference infrastructure will eventually sit inside Palantir’s enterprise security perimeter, letting eligible Palantir customers deploy and fine-tune open models on Nebius hardware while retaining control of their own data and models. 

The companies also plan to accelerate new compute capacity through modular data-center deployments at sites with available power.

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“Nebius’ compute infrastructure powers your ability to run your own AI models under conditions you control,” Palantir CEO Alex Karp said in the announcement. 

Nebius CEO Arkady Volozh added that the tie-up lets clients “run their optimized open models on trusted infrastructure.”

Shares moved in opposite directions on the news. Nebius climbed 7.73% to close at $243.88 on Tuesday, while Palantir slipped about 2.31% to $170.30, according to Benzinga Pro data

Burry’s Bearish PLTR, NBIS Positions 

Burry has held out-of-the-money Palantir puts, arguing the stock’s roughly $420 billion valuation and 137-plus trailing P/E already price in near-perfect execution indefinitely. 

He disclosed a fresh Nebius short in early August, part of a broader bearish basket that also includes Nvidia, Micron, Oracle and Caterpillar, built on the thesis that neocloud operators like Nebius understate GPU depreciation.

His thesis has already looked shaky: Nebius gained nearly 10% in August alone after posting 454% year-over-year revenue growth and a $3 billion annualized run rate, while Palantir jumped over 5% in August on a ninth straight EPS beat. 

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The Bottom Line

Tuesday’s partnership news — which deepens Nebius’s enterprise reach through Palantir’s customer base and reinforces Palantir’s sovereign-AI positioning — gives both companies fresh bullish narratives just as Burry’s short book has grown. 

Investors will be watching whether Burry indicates any change in his positioning.

Image created using artificial intelligence via MidJourney.