AI will create the largest wealth in venture capital history but many AI startups will be pushed out, Mel Williams, co-founder of TrueBridge Capital Partners, said.
Business Insider reported on the 28th that Williams said on the Uncapped podcast hosted by Jack Altman that the industry is in the early stage of an AI wave and that a major correction will come over the next 10 years.
He said the early AI startup environment is overheated. Founders from OpenAI and major research labs are attracting large funding at high valuations without proving product-market fit, he said.
He expects the structure in which a few companies capture most profits in the AI market to deepen.
Williams said AI software can scale instantly with almost no cost, and that companies and consumers are adopting AI tools quickly. He said firms that secure product-market fit will dominate the market while others will collapse.
He said AI accounts for 50 to 60 percent of total venture investment, making a major correction unavoidable. Williams said the AI investment environment is highly overheated and many companies are likely to fail.
Chigyu Hwang
delight@d-today.co.kr