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What would you do in this situation?

Let's say you just graduated college and you and your best friend got the same internship together. You're friend has a higher/ better position than you and he says that he got this position because he worked hard and got it but later you found out he got it because he had Rich parents who had "connections" and he barely even works this job because AI does most of it. He just pretends he's hard working
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I wouldnt hold it on him being a rich kid and having connections.
I would hold his work ethic and lying against him though. Id also reconsider your friendship, dont end it if hes been an actual friend to you, just file it away and find a new company to work for.