Zaveri and Tanuku had marketed a special purpose vehicle that offered an allocation in Groq’s convertible note. Both Zaveri and Tanuku have defended their actions, with Zaveri's spokesperson stating that his firing was "unfair and undeserved" and Tanuku's lawyer stating that he was "terminated without cause". Social Capital has not disclosed its reasoning for the firings, but Palihapitiya hosted a call for investors to discuss the matter. The firm also announced that Steve Trieu will serve as its global chief financial officer on an interim basis.
Key takeaways:
- Social Capital, led by Chamath Palihapitiya, has terminated two of its partners, Jay Zaveri and Ravi Tanuku, related to an undisclosed matter involving its investment in AI startup Groq Inc.
- The firings are said to stem from perceived breaches of company policy, specifically related to a $60 million convertible note in Groq, a startup that Social Capital backed in 2017 and 2018.
- While the firm has not disclosed its reasoning, Palihapitiya hosted a call for investors to discuss the firings but did not reveal significant new information.
- In a related move, Steve Trieu will serve as Social Capital's global chief financial officer on an interim basis, overseeing all finance aspects of the organization.