Social Capital AI Startup Deal Led Palihapitiya to Fire Partners

  • The dramatic firings highlight unusual structure at firm
  • Social Capital scrapped efforts to raise outside funding

Chamath Palihapitiya

Photographer: David Paul Morris/Bloomberg
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Venture capital firm Social Capital suddenly fired two of its partners after they tried to raise outside money for an artificial intelligence startup — an endeavor that provoked the ire of the firm’s leader, high-profile investor Chamath Palihapitiya.

After it fired Jay Zaveri and Ravi Tanuku on Sunday, the firm offered no details other than that high-wattage law firm Wachtell, Lipton, Rosen & Katz had been hired just days earlier to investigate a “situation,” Bloomberg first reported.