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 venture capital industry and deeptech startups, including robotics, spacetech and defence tech. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

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