"Arison said that a "VC bubble" was forming - but that the AI incumbents have an incentive to advise against investment. "This is how venture always works," Arison told Business Insider. "Most VCs are actually followers, not trendsetters. A few people will set the trends, then everyone will jump in that direction and too much money will go into that space.""
""How many companies probably should not have taken money from SoftBank five, seven years ago?" Arison said. "Had they not done that, they might have still been around.""
"Grindr's CEO told Business Insider that great AI companies would "get destroyed" thanks to the growing "VC bubble." "A few people will set the trends, then everyone will jump in that direction," he said. Grindr has embraced new tech, building "AI-native" products and introducing gAI (pronounced "gay-I")."
A VC bubble is forming around AI, concentrated on application-layer startups rather than architecture or model companies. Most venture capitalists tend to follow emerging trends, causing capital to flood popular categories and inflate valuations. Excessive funding can push companies into untenable growth or risky decisions, potentially destroying otherwise strong firms, as seen in late-2010s SoftBank investments. SoftBank made large bets such as $9 billion in WeWork and $375 million in Zume, both of which later failed. Grindr has positioned itself as AI-first, developing AI-native products and launching gAI (pronounced "gay-I") while remaining cautious about the funding frenzy.
Read at Business Insider
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