Elon Musk Says VCs Who Went Bullish On Crypto To AI Are 'Right' About The Latest Fad

On Monday, Tesla and SpaceX CEO Elon Musk said that the latest prediction by venture capitalists who have previously been bullish on cryptocurrency and then artificial intelligence might be correct.

What Happened: A person on X, formerly Twitter, who goes by the name Daniel on the platform, shared a meme stating, "Every VC who went from bullish on crypto to bullish on AI but now is becoming bullish on hardware and manufacturing."

The meme read, "I support the current thing."

In response, the tech billionaire said that this time "they're right."

Why It's Important: In a Spaces conversation with ARK Investment Management CEO Cathie Wood last year, Musk spoke about his philosophy on the role of investors in business. “Each investor you add is an ally,” he said, adding, “It’s good to have more allies.”

The Tesla CEO’s diverse portfolio includes The Boring Co., Neuralink Corp., X, formerly Twitter and xAI Corp. “In all my companies across all the years, I’ve never lost money for an investor even once,” Musk said at the time, referring to his track record spanning more than 100 financing rounds.

In August 2023, it was reported that Musk-backed Neuralink received $280 million in funding from Peter Thiel’s Founders Fund. Thiel’s venture capital firm also invests in several other private companies connected to Musk, including SpaceX and The Boring Company.

Musk-led high-profile buyout of Twitter involved a group of 19 investors including Andreessen-Horowitz VC fund, Oracle founder Larry Ellison, Sequoia Capital, and Ron Baron.

However, a year after the acquisition, the investment reportedly turned sour, with investors witnessing a depreciation in their stakes amounting to approximately $4.6 billion.

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