Analysis

August 12, 2024

Is the AI frenzy over? Not so fast, but VCs predict a ‘tough’ consolidation period

A recent tech stock selloff and worries about revenue have spooked AI investors


Anne Sraders

6 min read

Photo: Lexie Yu

The AI frenzy — which has seen VCs pour tens of billions into AI startups at often nosebleed valuations in the last couple of years — has seemingly created a bubble. And for some investors, seeing global chipmaker Nvidia’s stock — which soared well over 100% in the last year as its chips continue to be vital to the AI boom — plummet recently by more than 20% was vindicating. 

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Anne Sraders

Anne Sraders is a senior reporter at Sifted, based in Berlin. She covers the VC industry and deeptech startups. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

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