CZ's Post-Prison Pivot: From Crypto King to AI Investor

Changpeng “CZ” Zhao, once the crypto world's golden boy, is trading his Binance crown for an AI investor hat. Fresh out of U.S. custody, the former CEO says he is now eyeing artificial intelligence, blockchain, and biotech as his next big bets.

But is he?

"[I] will continue to invest in blockchain/decentralized technologies, AI, and biotech. I am a long term investor who cares about impact, not returns," CZ said in a written statement posted on his X account shortly after his release.

He wants to take things easy and touch some grass before going back to business. “Let me chill for a bit,” he said. “Binance seems to be doing well without me back-seat-driving, which is excellent. Every founder's dream,” he said.

As part of a plea bargain to money-laundering-related charges, CZ agreed to a stipulation that he steps down from his role as CEO of the world’s biggest crypto exchange. So it would make sense for the scrappy founder to start diversifying his interests.

Yet Binance remains a privately held company with CZ as the largest shareholder, giving him significant sway over its direction. And even with all the legal limitations, he is still allowed to have a say in key areas of the exchange’s management.

"As a shareholder, he will be looking at the performance of the company, and if things are not up to what he expects, as an investor, it's always his right to replace, nominate a new board of directors, or a new CEO,” Richard Teng, the current CEO of Binance told Axios.

Even reactions on Binance Square, the official blog that the company hosts, and where CZ and Teng post, seemed skeptical that he’d distance himself from the company he founded. “Changpeng Zhao as the largest shareholder should still have a significant influence on its future,” said one poster. “He is expected to continue to exert influence in the cryptocurrency and business fields in the coming years.”

From Crypto to AI: Why It Makes Sense

Thus far, CZ has not revealed which AI projects he has on sight or what type of AI products he would like to build or promote. But if we take him at his word, the migration can be seen as part of a broader trend sweeping the crypto landscape after the AI boom sparked after the massive adoption of ChatGPT last year.

Lots of crypto-related businesses and investors have pivoted to AI. Core Scientific, a major player in crypto mining, just inked a $6.7 billion deal with CoreWeave and Nvidia for AI data processing. Iris Energy is also jumping on the AI bandwagon, earning nods from analysts for its strategic shift and rebranding. Also, Hut 8, another crypto mining heavyweight, secured a $150 million investment to upgrade its infrastructure for AI workloads.

Likewise, crypto projects like Akash Network and Render Network are leveraging AI to offer decentralized computing resources and GPU rendering services. Bittensor is creating a decentralized ecosystem for training AI models, while SingularityNET, Fetch.ai, and Ocean Protocol decided to merge and create a huge project that focuses on creating a whole decentralized AI ecosystem.

Even some native crypto VCs are making a pivot. Pantera Capital, known for its early bets on major crypto platforms, is raising a cool $1 billion specifically for crypto-AI projects and the OG BItcoin founder and former CEO of Shapeshift is now fully on board with Venice.AI, a company that focuses on providing a private alternative to ChatGPT.

The numbers tell a convincing story. According to PwC AI is projected to add $15.3 trillion to the global economy by 2030. Compare that to forecasts by Allied Market Research projecting a total of $4 trillion by the crypto industry in the same amount of time and it’s easy to see why investors are falling in love with a new tech. VanEck expects that industries mixing both verticals reach $10.2B in revenue, so it’s not a this-or-that type of scenario.

As for CZ, his vision extends beyond just making a quick buck. He's also set his sights on educational projects, mainly through Giggle Academy, his new initiative aimed at providing free, gamified education for children. (This too will make use of both blockchain and AI, according to the project's "concept paper.")

"There are always more opportunities in the future than there were in the past," CZ said, “I will also dedicate more time and funding to charity (and education). I have some rough ideas.”