Billionaire Investor Chamath Palihapitiya Says AI Could Wipe Out Venture Capitalists By 2023: 'Reasonable Case To Make'

The role of venture capitalists may be significantly altered or even made obsolete by advancements in artificial intelligence (AI), according to billionaire investor Chamath Palihapitiya.

What Happened: Palihapitiya, a former Facebook executive and Silicon Valley VC firm Social Capital’s CEO, speculates that AI could be the driving force behind the change, Business Insider reported. He suggested that there is a “reasonable case to make” that VC jobs could be replaced by “an automated system of capital against objectives.”

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He also noted that the rise of AI could spur millions of startups, leading to investors making a higher proportion of smaller bets.

“There’s a lot of sort of financial engineering that kind of goes away, in that world,” Palihapitiya said.

The comments were made in a recent episode of the “All-In Podcast,” hosted by Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg.

Why It Matters: Fears of job losses have been stoked by rapid advancements in generative AI across multiple sectors, including finance. While AI is expected to boost worker productivity and handle routine tasks, concerns remain about its potential to phase out or reduce some entry-level roles.

For instance, Deutsche Bank has been reported to be exploring tools that could substantially cut down on the time required for some tasks performed by junior bankers, leading to fewer hires and making it even more challenging to break into Wall Street.

Palihapitiya has previously voiced concerns about the role of AI. In May, he warned of the potential dangers of AI chatbots, like ChatGPT, expressing ‘dangerous’ beliefs about communism and dictators. Therefore, his latest comments reflect an ongoing skepticism about unchecked AI development and its potential implications for various aspects of human life, including job security and financial markets.

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