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Social Capital AI startup deal led Chamath Palihapitiya to fire partners

Economic Times · 8m

Venture capital firm, Social Capital, fired two partners, Jay Zaveri and Ravi Tanuku, after they attempted to raise outside money for an artificial intelligence startup. The firm's leader, Chamath Palihapitiya, was reportedly infuriated by their actions. While the details remain undisclosed, the situation has generated interest in Silicon Valley. Palihapitiya is a prominent tech investor, known for his involvement in Facebook and Bitcoin, and is referred to as the "SPAC king." The dispute appears to stem from an investment in Groq AI, with Zaveri seeking outside funds for a follow-up deal. The financing was relatively small, about $2 million, and had the backing of some firm leaders. However, Palihapitiya felt blindsided and subsequently fired the partners. The incident highlights the unique structure of Social Capital, which has primarily functioned as a family office for Palihapitiya, managing personal funds and those of select ultra-wealthy individuals.