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Tech investor and LinkedIn co-founder\u00a0Reid Hoffman criticized the AI strategy of Space Exploration Technologies Corp. and the performance of xAI. <\/p>\n
Hoffman Doubles Down On SpaceX Critique <\/p>\n
In the Pioneers of AI podcast on Tuesday, in conversation with Rana el Kaliouby, Hoffman said that xAI, as Elon Musk himself had described it, was a “complete train wreck” in its efforts to build foundational models and related technologies. He also highlighted that all of xAI’s founders have departed and the company is on its “third restart.” <\/p>\n
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“SpaceX isn’t an AI company,” said Hoffman. His remarks followed SpaceX’s public listing on June 12, where AI was a significant part of its IPO narrative. Shortly after, the company announced its acquisition of Cursor, an AI coding tool. Hoffman saw this as a sign of SpaceX’s AI deficiency rather than an indication of its capability and termed it as using the market cap to “buy AI companies and try to buy your way into relevance.” <\/p>\n
“You’re a premium-priced CoreWeave,” Hoffman said. “I get it. Which is not an AI company.” <\/p>\n
SpaceX has been facing financial challenges, losing $1 trillion in a week, yet it managed to raise $20 billion in debt. This suggests a growing divide between equity investors’ and credit investors’ views on Elon Musk’s latest public company. Notably, CNBC’s\u00a0Jim Cramer\u00a0earlier called SpaceX a “meme stock” and compared it to\u00a0GameStop Corp.. <\/p>\n
OpenAI, Anthropic Can Both Win <\/p>\n
Speaking about other AI companies that could eventually go public, Hoffman expressed concern over the U.S. government’s decision to compel Anthropic to withdraw its Fable and Mythos models from the market, criticizing the lack of a clear, principled rationale behind the move. <\/p>\n
See Also: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a> <\/p>\n Despite being\u00a0an investor in both Anthropic\u00a0and OpenAI, Hoffman dismissed the notion that the companies are direct rivals, arguing that the AI market is large enough for both to achieve substantial success. \u00a0“There’s a lot of room for both of them to win incredibly,” he said. <\/p>\n Hoffman’s comments come at a time when he has recently left Microsoft Corporation’s board to focus on his startup, Manus. He had also departed from OpenAI’s board in 2023 due to potential conflicts of interest with his investments through Greylock Partners and his personal holdings in startups building on OpenAI’s technology. <\/p>\n Story Continues <\/p>\n Meanwhile, OpenAI’s confidential IPO filing has drawn attention after a report revealed a significantly larger loss in 2025. The company’s net loss reportedly widened to about $39 billion in 2025 from $5 billion in 2024, though its adjusted loss excluding restructuring and other non-cash charges was $8 billion. The company spent roughly $34 billion during the year, including $19 billion on research and development and nearly $6 billion on sales, marketing, and other expenses. <\/p>\n Image via Shutterstock <\/p>\n Read Next:\u00a0 <\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. <\/p>\n Arrived <\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. <\/p>\n BluSky AI <\/p>\n The rapid adoption of artificial intelligence is creating significant demand for data centers, power, and compute infrastructure. 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Miso Robotics develops AI-powered kitchen technology that is already being deployed in restaurant environments, with products designed to help operators improve efficiency and streamline operations.<\/a> As artificial intelligence expands beyond software and into real-world applications, the company is positioning itself at the intersection of robotics, automation and the future of food service. <\/p>\n Vinovest\u00a0 <\/p>\n Fine wine and rare whiskey have historically moved independently of the stock market, making them a compelling alternative asset. Vinovest manages authenticated, insured portfolios of investment-grade wine and whiskey starting at $5,000<\/a> \u2014 sourcing, storage, and insurance all handled for you. <\/p>\n FarmTogether <\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches. <\/p>\n EquityMultiple\u00a0 <\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process.\u00a0 <\/p>\n Fundrise <\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. <\/p>\n American Hartford Gold <\/p>\n