Palihapitiya fired Social Capital partners amid AI investment dispute, most staff departed
Mar 12, 2024In March 2024, Palihapitiya fired Social Capital partners Jay Zaveri and Ravi Tanuku in a dispute over a Groq AI investment SPV. The firings appeared to center on whether Zaveri had properly sought approval to raise outside capital for a follow-on investment. Former employees alleged the dispute was a pretext to deny carried interest. Subsequently, the firm's CFO and general counsel resigned, and almost all staff departed. Reporting by Newcomer revealed Palihapitiya boasted about having no HR department at companies where he has majority control, instead directing employees to third-party law firms.