{"id":3998,"date":"2025-07-25T14:37:11","date_gmt":"2025-07-25T14:37:11","guid":{"rendered":"https:\/\/musictechohio.online\/site\/ai-venture-capital-exits\/"},"modified":"2025-07-25T14:37:11","modified_gmt":"2025-07-25T14:37:11","slug":"ai-venture-capital-exits","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/ai-venture-capital-exits\/","title":{"rendered":"Investors Are Suddenly Pulling Out of AI"},"content":{"rendered":"
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Despite pouring a record-breaking amount of cash into US-based AI startups in the first half of 2025, some of the tech industry\u2019s most bullish backers are now starting to change their tune or even exit the field altogether \u2014 and the money isn\u2019t necessarily coming with them.<\/p>\n

With the first half of the financial year now behind us, CNBC<\/em> reports<\/a>\u00a0<\/strong>that venture capitalists \u2014 who\u2019ve dumped $104.3 billion into AI companies this year so far, almost as much as all of 2024 combined \u2014 are now frequently exiting through mergers and acquisitions with much lower returns on their bets.<\/p>\n

While two-thirds of US venture funding now goes to AI \u2014 up from 49\u202f\u00a0percent last year \u2014 there have also been 281 VC-backed exits, meaning the point at which an early-investor cashes out of a company,\u00a0so far in 2025.<\/p>\n

Exits aren\u2019t bad news for the AI industry per se, as long as the money going out of AI matches or exceeds the money going in. But as CNBC<\/em> notes, there\u2019s still a lot more money going in than going out, with just $36 billion reported in cashouts across 2025.<\/p>\n

While some of these exits turn into lucrative IPOs \u2014 like the public listing of AI-powered insurance company Slide, now valued at $2.3 billion<\/a> \u2014 the vast majority of them are said to be “lower-value acquisitions.”<\/p>\n

And despite little concrete evidence that all these venture capitalists are ever going to get their money back, the blank checks to AI companies are only ramping up.<\/p>\n

Leading the charge are some eye-watering AI investments for the biggest and buzziest companies in the space. OpenAI raised $40\u202fbillion<\/a> in March, for example, the largest deal of its kind ever recorded, while Scale\u202fAI received $14.3\u202fbillion<\/a> from Meta in June (right before laying off 14 percent of its staff<\/a>.)<\/p>\n

While headline figures dazzle, venture capital overall is comatose, CBNC<\/em> notes, with industries like fintech, cloud computing and crypto seeing huge drops in venture capital funding this year.<\/p>\n

It also comes as financial analysts warn that an “AI bubble” of epic proportions may be getting ready to burst. Recently, Apollo Global Management chief economist Torsten Slok warned<\/a> that the economic conditions surrounding AI are beginning to look far worse than the infamous dot-com crash of the late 1990s.<\/p>\n

Slok noted that “the top 10 companies in the S&P 500 today are more overvalued than they were in the 1990s,” as top tech stocks continue to inflate thanks to heavy investments in AI.<\/p>\n

And some major players are already giving AI the cold shoulder. Back in February, for example, Microsoft\u2019s CEO Satya Nadella made a major U-turn when he announced the cancellation<\/a> of some massive data center leases, signaling an embrace of the “wait and see” approach from a company that had previously poured billions into AI.<\/p>\n

That just might be the harsh reality behind the hype: a booming sector on paper, but one haunted by a growing feeling of dread.<\/p>\n

More on AI: <\/strong>AI Hype Will Plunge America Into Financial Ruin, Economist Warns<\/em><\/a><\/p>\n

The post Investors Are Suddenly Pulling Out of AI<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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Despite pouring a record-breaking amount of cash into US-based AI startups in the first half of 2025, some of the tech industry\u2019s most bullish backers are now starting to change…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,2205,2936,1902],"tags":[],"class_list":["post-3998","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-economy","category-investing","category-venture-capital"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/3998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=3998"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/3998\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=3998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=3998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=3998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}