"Great for Jim Chanos. Fantastic as a hedge ... but the reality is being long equities makes sense; being long innovation makes sense. Betting against entrepreneurs who are changing the world has never been a profitable endeavor. Why start now?" he added.

"Jim Chanos makes money once a decade. While the market rips up, the guy just bleeds money. He's never on CNBC. Every time something works, he's there for five minutes," Palihapitiya, former Facebook executive and now CEO of Social Capital, said in an interview Tuesday on CNBC's " Halftime Report ."

The billionaire investor has been a big proponent of the electric-car maker and CEO Elon Musk. Chanos, founder of Kynikos Associates, has accused Musk of overpromising on Tesla and previously said the company is worth zero.

Palihapitiya has made some success being one of the early investors of a slew of tech companies including Slack and Box. In the interview, he compared himself to the "Oracle of Omaha" Warren Buffett, saying he made similar career choices when he slowed down his business to focus on fewer investments.

"Very similar to what Buffett went through in his late 30s, early 40s, when he shut down Buffett partnership to start Berkshire, I similarly decided I have enough capital. I think I'd rather make fewer, concentrated bets," Palihapitiya said.