AI venture capital is moving from fervent to picky! There is a wave of water squeezing, and a major reshuffle in the industry is likely to happen as soon as it is triggered

The Zhitong Finance App learned that venture capital experts said that as valuations in some fields begin to show signs of being too high, investors should shift their focus to the productivity growth of artificial intelligence companies.

Yakub Nitra, founding partner of venture capital firm Purple Ventures, said: “As investors' requirements on where technology creates real value and where to simply package a feature into a business, we are likely to see a major reshuffle in the industry.” He expects capital to become much more demanding in the next 6 to 12 months.

The AI wave continues to reshape the market. Investors are investing in semiconductor companies other than Nvidia, betting that the construction of AI data centers will benefit a wider range of chipmakers and infrastructure companies. That being said, concerns about the bubble remain, as companies' investment in capital expenditure is inexhaustible, and high ceiling-level growth data casts doubt on the sustainability of this expansion.

David Ng, co-founder and CEO of wealth management firm Arki Finance, said, “The next question is whether apps and end users can generate enough productivity, revenue, and cash flow to justify this investment.”

Nitra notes that while AI can transform the economy, not every company that writes AI in its business plan “deserves an unusually high valuation.” He added, “The real winners will be companies that use AI to solve expensive and extremely complex problems.”

As an example, Nitra cites a company in his portfolio, TASS Vision, which deploys edge AI and cameras to analyze customer movements within physical stores, thereby providing retailers with data they can use to improve their business.

Shane Cheson, founding partner of asset management company Openspace Capital, believes that even if there is a bubble, it will eventually bring some positive results.

“If the bubble does burst, it will mainly hurt those who invest in an inflated bubble driven by FOMO,” he said, “but the infrastructure that has already been built will still be used and will prove disruptive to many companies.”