Artificial intelligence startups have clearly been all the rage in 2023. But as the summer nears its end, the A.I. hype may be starting to cool for investors in those earliest-stage companies.
A.I. seed companies have “been priced at an extreme premium with multiple term sheets in certain situations, minimal or limited diligence done, and a lot of expectations for what these companies will grow into moving forward,” Meera Clark, a principal at Redpoint Ventures, told me. “I would say over the past couple of months, we've seen...the bloom fall off the rose a little bit, in that we've begun to see large tech catch up, and at an accelerating pace.”
