Citron Research says Palantir's valuation looks irrational versus OpenAI's. I agree.

Shares of Palantir ( PLTR -8.94% ) are falling on Tuesday, down 6.9% as of 11:02 a.m. ET. The drop comes as the S&P 500 ( ^GSPC -0.67% ) lost 0.2% and the Nasdaq Composite ( ^IXIC -1.41% ) dropped 1%.

Palantir, the AI pioneer , was the target of a short report from Citron Research, one of the most prominent short sellers on the market.

Citron says Palantir's valuation is irrational

Citron cited the most recent valuation of OpenAI, which on Friday was confirmed to be raising another $6 billion in funds at a $500 billion valuation, as proof that Palantir's stock is overvalued.

The short seller points out that this $500 billion valuation puts OpenAI's price-to-sales (P/S) at r

See Full Page