For Thiel, AI isn’t a “machine god” or humanity’s path to immortality. But he still believes it’s the only visible way out of what he calls “technological stagnation.” The billionaire, who has invested in OpenAI, Palantir, and DeepMind, warns that despite AI’s immense potential, it may still fall short of reigniting the sweeping innovation seen during the early space age or the internet boom.
What AI Can and Can’t Fix
Thiel has long argued that society has slowed down since the 1970s in everything from energy innovation to transportation. On the podcast, he says, “The fact that we’re only talking about AI is an implicit acknowledgment that, but for AI, we are in almost total stagnation.” In short: if it weren’t for artificial intelligence, there’d be little else driving excitement in tech.
Even with his investments in some of AI’s most high-profile startups, Thiel remains skeptical. “It might be enough to create some great companies,” he admits, “but I’m not sure it’s enough to really end the stagnation.” What he yearns for are bolder moonshots—missions to Mars, cures for Alzheimer’s, and deep human transformation.
More Than Hype, Less Than Salvation
Asked whether the almost religious fervor surrounding AI is justified—whether visions of digital immortality and mind-machine mergers hold water—Thiel’s response is striking. He critiques transhumanism not for being unnatural, but for being “pathetically little.” To him, simply swapping human organs or extending lifespan falls short. “We want you to be able to change your heart and your mind and your whole body,” he says. “And transhumanism doesn’t go far enough.”
At the same time, Thiel questions whether AI enthusiasts are overhyping their ambitions to raise money. “Is it hype? Is it delusion?” he muses, casting doubt on the techno-utopian dream while reaffirming the need to try AI nonetheless.
The Choice: Try or Decay
Despite his skepticism, Thiel’s message isn’t cynical, it’s urgent. “I still think we should be trying AI,” he says. “And that the alternative is just total stagnation.” Without innovation, he warns, society may simply “unravel.” His remarks serve as both a caution and a call to arms: AI may not deliver transcendence, but without it, there may be nothing new left to try.
As the rest of Silicon Valley rushes to deify artificial intelligence, Thiel’s grounded—and unsettling—warning is this: if AI fails to spark true transformation, we may find ourselves stuck not in dystopia, but in something worse—irrelevance.