AI craze is distorting VC market, as tech giants like Microsoft and Amazon pour in billions of dollars
Publishing timestamp: 2024-09-06 10:47:24
Summary
Tech giants like Microsoft, Amazon, and Nvidia are pouring billions into AI startups, creating challenges for traditional venture capitalists. The private market is rich with AI startups, but exits are difficult due to lack of profitability metrics. Venture investors are shifting towards investing in application layer startups, but returns may take years. Some companies are exploring special purpose vehicles (SPVs) for funding. IPOs for AI companies have been limited, with high-profile companies hesitant to go public. Despite challenges, most venture investors are optimistic about the potential for generative AI to create big returns in the future.
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