Peter Thiel’s Surprise Billion-Dollar Bet on a Disruptive AI Startup—Here’s Why Silicon Valley Is Talking

Lead Investor in Ethereum’s Latest Rally Silicon Valley billionaire Peter Thiel is back in the crypto spotlight after leading a heavyweight syndicate that accumulated several hundred million dollars’ worth of ether during August’s market rebound, helping the token outpace bitcoin for the first time this quarter. Traders say the fresh capital—channeled through both spot purchases and calls on regulated exchanges—has pushed ETH above the psychologically important $3,500 mark and rekindled debate over whether Ethereum can become Wall Street’s preferred settlement layer. Bullish Exchange Files for Upsized IPO Thiel’s crypto play doesn’t end with tokens. Bullish, the Gibraltar-based exchange he co-founded in 2021, amended its U.S. IPO prospectus this month, seeking a valuation of up to $4.82 billion—nearly double the figure floated in January. The company disclosed that more than 18 percent of its daily volume now settles in dollar-denominated stablecoins, a shift executives call “the new normal” for institutional crypto trading. If the New York listing clears SEC review, Bullish would become the year’s largest fintech debut. Founders Fund Quietly Closes $4.6 Billion Growth Vehicle Away from crypto, Thiel’s flagship venture firm, Founders Fund, announced the final close of a $4.6 billion growth fund aimed at late-stage artificial-intelligence, defense-tech, and biotech bets. Limited partners say the vehicle was oversubscribed despite a broader VC funding slump, underscoring Thiel’s continued pull with endowments and sovereign wealth pools. Thiel Fellowship Turns Gen Z into Unicorn Builders Meanwhile, this summer’s cohort of the Thiel Fellowship—a program that gives would-be college dropouts $200,000 each to build startups—has delivered its highest-value alumni exit to date. Fortune reports that three former fellows who left Stanford in 2022 to launch battery-recycling startup VoltLoop have now sold a minority stake to Volkswagen at a $1.3 billion valuation. The milestone is fueling fresh debate over the merits of skipping higher education in favor of entrepreneurship. Political Chessboard Remains in Play On the policy front, insiders in Washington say Thiel is weighing whether to again bankroll outsider Republican Senate candidates after sitting out the 2024 cycle. While no formal commitments have been made, operatives note that a surge in ether-related gains could expand the billionaire’s war chest heading into the 2026 midterms. What to Watch • SEC’s ruling on Bullish’s S-1; approval would signal a thaw in U.S. crypto listings. • Ethereum’s Dencun upgrade, expected in Q4, which could validate Thiel’s enlarged ETH position. • Founders Fund term-sheet activity in defense-tech as Pentagon AI budgets rise. Bottom line: Peter Thiel is simultaneously betting on crypto market structure, late-stage AI, and next-gen founders, reinforcing his reputation as Silicon Valley’s most contrarian—yet consistently influential—capital allocator.