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Philippe Laffont Sees More Upside in AI and Space Than in Bitcoin

The Coatue founder says AI and space look more attractive than Bitcoin now that capital is also flowing out of crypto through new IPOs and stablecoin payments.

By Luc Vesters
• 2 min read
Philippe Laffont Sees More Upside in AI and Space Than in Bitcoin

Key Takeaways

  • Philippe Laffont sees AI and space as clearer long-term opportunities than Bitcoin.
  • He says new IPOs and stablecoin payments give investors more options than they used to have.
  • Coatue is investing in AI companies like Anthropic and OpenAI, while Bitcoin looks less certain to Laffont.

Philippe Laffont, founder of the investment firm Coatue Management, sees artificial intelligence (AI) and space as clearer long-term opportunities than Bitcoin. In a recent interview with CNBC, the billionaire said he is becoming less confident about Bitcoin's future, while valuations for AI and space companies keep rising.

New Investment Opportunities Versus Bitcoin

Laffont, who started Coatue in 1999 after working at Tiger Management, says the crypto market is changing. In the past, scarce initial public offerings (IPOs) pulled speculative capital into Bitcoin, but now there are more alternatives. New IPOs and the rapid growth of stablecoin payments are giving investors other risky options. Bitcoin is currently trading around $60,000 (€52,900), about half of its record near $126,000 (€111,100), while AI and space companies are gaining value.

The Rise of Billion-Dollar Companies in AI and Space

According to Laffont, it is easier to identify a future $10 trillion (€8.8 trillion) company than to predict where Bitcoin's price is headed. He expects global market value could grow from about $120 trillion (€106 trillion) to $200 trillion (€176 trillion), with a company holding a 5% market share potentially reaching a value of $10 trillion (€8.8 trillion). Nvidia, the chipmaker behind the AI boom, is nearing a $5 trillion (€4.4 trillion) valuation. SpaceX recently posted the biggest IPO ever with a valuation of $1.77 trillion (€1.6 trillion), followed by a 19% price jump at the listing.

Private companies like Anthropic and OpenAI, valued at $965 billion (€851 billion) and $852 billion (€751 billion) respectively, are getting close to Bitcoin's combined value, which is around $1.2 trillion (€1.1 trillion). Coatue is actively involved in investments in these AI companies, which reinforces Laffont's view.

What This Means for European Crypto Investors

This trend could matter for European investors who follow the crypto market. While Bitcoin is still recommended by major asset managers like BlackRock for diversification, Laffont's preference for AI and space points to a possible shift in capital flows. That could affect how European investors build their portfolios and where they look for opportunities in emerging technologies and markets. A similar institutional view on Bitcoin came up earlier when BlackRock Advises 1-2% Bitcoin Allocation for Institutional Portfolios.

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