Hyperliquid Co-Founder Warns Crypto Is Losing Top Talent to AI
Hyperliquid co-founder Jeff Yan believes one of the biggest challenges facing the cryptocurrency industry today is its growing struggle to attract talented young entrepreneurs, many of whom are increasingly choosing careers in artificial intelligence instead.
Speaking on the VALR podcast, Yan said the rapid rise of AI, combined with the prestige and excitement surrounding the sector, has made it the preferred destination for many ambitious founders and developers. As a result, fewer highly skilled entrepreneurs are entering crypto and fintech, despite the significant opportunities still available in the space.
According to Yan, many young innovators are trying to determine where they can create the greatest impact. While AI currently dominates headlines and investment flows, he argued that crypto offers a unique opportunity to rethink and rebuild financial systems from the ground up.
Yan emphasized that building on-chain financial infrastructure involves solving complex real-world problems by transforming economic theories and academic concepts into functioning markets that can operate efficiently at global scale. Rather than chasing trends, he encouraged entrepreneurs to focus on the underlying challenges each industry is attempting to solve.
His comments come at a time when competition in the AI sector is intensifying. Chinese AI companies have recently gained attention for strong performances in global model rankings. One example is Kimi K3, which reached the top position on Frontend Code Arena and performed well across several AI benchmarks.
The development prompted concern from former White House crypto and AI adviser David Sacks, who warned that excessive regulation could weaken America’s competitive position. Sacks argued that the United States became a technology leader during the internet era by allowing innovation to flourish without excessive government barriers, and he believes a similar approach is needed for AI.
While AI continues attracting talent and investment, some market observers are becoming increasingly cautious about the sector’s rapid growth. Former Fidelity fund manager George Noble warned that an AI investment bubble could eventually create financial damage far greater than the dot-com crash if massive spending on AI infrastructure fails to generate expected returns.
Noble suggested that the consequences of a major AI downturn could extend beyond technology companies and impact broader financial markets due to the enormous amount of capital currently flowing into the sector.
Despite AI’s momentum, Yan remains optimistic about crypto’s long-term potential. He believes the industry still presents meaningful opportunities for entrepreneurs who want to build next-generation financial systems and create innovative market structures. However, he stressed that the success of on-chain finance will depend on attracting more talented builders capable of turning complex ideas into products that can serve millions of users worldwide.
For Yan, the issue is not whether AI is valuable, but whether crypto can continue attracting enough ambitious entrepreneurs to drive the next phase of innovation in decentralized finance and digital markets.
