The burgeoning field of artificial intelligence is attracting significant investment, but one prominent tech investor believes cryptocurrency has no place within an AI-focused portfolio. Imran Khan, founder and CIO of Proem Asset Management, argues that the fundamental investment logic driving crypto differs drastically from that underpinning AI-driven productivity gains. This divergence, he says, makes crypto a misfit within his firm’s structural technology investment framework.
Khan’s stance comes as some investors explore potential synergies between AI and cryptocurrency, envisioning a fusion of technologies. However, he largely views them as separate investment themes. “Crypto is a completely different space,” Khan stated in an interview. “Investing in AI is investing in productivity and economic growth.” This distinction is key, as Proem focuses on businesses poised to benefit from structural shifts in technology.
AI vs. Crypto: A Fundamental Divide
Khan, who previously served as Chief Strategy Officer at Snap (formerly Snapchat) and led global internet investment banking at Credit Suisse, including Alibaba’s record-breaking IPO, manages a $450 million portfolio at Proem Asset Management, according to CoinDesk. While he doesn’t outright dismiss cryptocurrency, direct token exposure doesn’t align with the firm’s focus on private equity. However, Proem does hold positions in companies connected to the crypto space, including Coinbase (COIN), Robinhood (HOOD), bitcoin miner Iren (IREN), and the iShares Bitcoin Trust (IBIT) through its latest 13F report.
Khan clarified that these holdings represent a broader focus on the technology sector, rather than a strategic bet on AI integration with cryptocurrency. “These positions are not part of our AI strategy, but rather part of a broader focus on technology,” he explained.
The Potential Intersection – and Skepticism
Despite his reservations, Khan acknowledges the arguments for a convergence between AI, and crypto. Some proponents suggest that both industries rely on decentralized computing networks and data infrastructure. Blockchain technology, they argue, could provide payment infrastructure and coordination systems for AI services operating across the internet without central ownership. A Binance report highlights this potential, noting that blockchain could facilitate payments for AI services.
Recent research from Citrini Research, which sparked concerns about an AI bubble, suggested that autonomous AI agents could disrupt traditional payment systems by favoring stablecoins over credit cards, potentially causing market instability. Experts similarly propose that blockchain-based systems could help track AI data usage, verify outputs, and manage the digital identities of autonomous software agents. This has spurred a wave of startups aiming to connect AI development with cryptocurrency-based networks.
Interestingly, many Bitcoin miners are already pivoting to support AI computing, reconfiguring their data centers and power infrastructure to capitalize on the AI boom. NYDIG analysts suggest that a potential economic slowdown triggered by AI-driven job losses could even bolster Bitcoin’s price, as policymakers respond with interest rate cuts and increased liquidity.
AI Investment Concerns and Historical Parallels
Khan’s comments arrive as the AI investment surge, fueled by the launch of ChatGPT, shows signs of strain. Shares of Nvidia (NVDA), a dominant supplier of chips used in AI model training, and Broadcom (AVGO), a networking and custom AI chip manufacturer, have both fallen approximately 5% year-to-date, reflecting growing questions about the pace of returns on massive AI spending. The Citrini Research report, which triggered AI warnings, presented a scenario where rapid AI adoption could lead to widespread white-collar job losses and a sharp decline in consumer spending by 2028.
However, Khan maintains a broader perspective, drawing parallels to past technological revolutions. “If you read Karl Marx, he said the same thing about machines 200 years ago,” he noted. “We’re going through an AI revolution that could be as big as the Industrial Revolution, and people are making the same arguments.” He emphasizes that latest technologies historically reshape the labor market rather than eliminating jobs entirely. “When new technologies emerge, new kinds of jobs are created,” Khan concluded.
As AI continues to evolve and its impact on various sectors unfolds, the debate over its relationship with cryptocurrency will likely intensify. The coming months will be crucial in determining whether the two technologies remain distinct investment themes or converge in unexpected ways.
What are your thoughts on the future of AI and crypto? Share your insights in the comments below.
