CZ says he prefers AI “shovels” over AI itself as infrastructure race intensifies

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CZ says he prefers AI “shovels” over AI itself as infrastructure race intensifies

Binance founder Zhao Changpeng, also known as CZ, believes it’s better to invest in the basic technology that supports artificial intelligence, rather than the AI programs themselves. He sees the current excitement around AI as a time when building the foundational technology is the most important investment.

Summary

  • Binance founder Zhao Changpeng says he favors investing in AI infrastructure such as data centers and energy systems over AI applications.
  • He highlights NVIDIA’s dominance in AI chips but expects more customized compute solutions to emerge over time.
  • His investment firm still allocates 70%–80% of capital to Web3, keeping crypto as the core focus.

During a Binance livestream, CZ explained his investment focus: the foundational infrastructure behind AI—things like data centers, power sources, and the large-scale computing needed to train and run AI models. He referred to these as the ‘shovels’ of the AI industry.

His remarks highlight a trend among investors: they’re realizing the success of artificial intelligence isn’t solely about the technology itself, but also depends on having enough energy, powerful hardware, and large-scale computing resources.

AI infrastructure becomes the dominant investment layer

Currently, NVIDIA leads the market for AI chips. However, in the future, we might see a move towards chips designed for specific AI tasks, rather than one-size-fits-all solutions.

This perspective reflects a growing trend in the AI industry: limitations in things like large data centers, power supplies, and chip manufacturing are now the main obstacles to progress, more so than a lack of new software ideas.

He’s also keeping a close eye on the latest advancements in robotics. He believes that robots powered by artificial intelligence could become a significant area for investment, in addition to investments in computer infrastructure.

As an analyst, I’m seeing a clear shift in how investors are approaching AI. Instead of focusing on companies building specific AI *products*, more and more capital is flowing to those creating the underlying infrastructure – the ‘shovels’ that will benefit from multiple AI applications. It’s like a gold rush – investors believe the real opportunity lies in equipping the miners, not necessarily owning the gold itself. They’re prioritizing foundational layers that can support various waves of AI adoption, seeing that as a more sustainable long-term strategy.

Web3 remains core as CZ keeps crypto allocation dominant

Although there’s increasing excitement around the technology needed for artificial intelligence, CZ clarified that his firm, YZi Labs, is still mainly invested in cryptocurrency and blockchain – making up around 70-80% of their investments.

He believes AI will significantly affect fields like biotechnology and robotics. However, the company isn’t currently planning major investments in biotechnology.

Despite growing investment in areas like AI and automation, the core focus remains on building the foundational technology for digital assets – things like decentralized networks and blockchain-based finance.

This approach highlights a growing trend in tech investment: the idea that AI, energy, semiconductors, and blockchain are all becoming linked together as essential components of a unified digital system.

Infrastructure-driven narrative spans AI, crypto and global markets

Changpeng Zhao’s statements come as investors worldwide are starting to favor companies that are building significant infrastructure in areas like chipmaking, defense, energy, and cloud technology.

I’ve noticed a shift in how people are investing lately. Instead of focusing on the apps we actually *use*, more money seems to be flowing into the companies building the underlying infrastructure – the stuff that *makes* those apps possible. It makes sense, especially with things like AI taking off and needing so much computing power. It’s like people are betting on the picks and shovels instead of the gold miners – they want to invest in what enables everything else.

As a crypto investor, I’m seeing a trend where people are really focusing on the underlying technology – the actual infrastructure – of projects. This seems to be tied to what’s happening in the wider world, like geopolitical issues and problems with supply chains. Basically, when things feel unstable globally, money tends to flow into things that are real and provide essential services, and that’s what I’m noticing in the crypto space too – a preference for projects building solid foundations.

Currently, the development of cryptocurrency infrastructure is happening alongside growth in artificial intelligence and data centers, all as part of a larger trend. These areas – computing power, energy, and financial systems – are increasingly connected and attracting investment.

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2026-05-13 20:46