60% VC to AI, 40% internet in 1999, same pattern, different decade — are we repeating history? They figured out a new way to pump, just invest in each other.

This is alarming.

Over 60% of VC money is now going to AI companies.

For reference, only 40% of the VC money went to internet companies in 1999.

If those AI companies don’t start generating real revenue soon enough, investors will start stepping back.

When this happens, all those unprofitable companies will go bankrupt and potentially trigger a systematic collapse, similar to what happened in 2000.

Time to be more cautious than greedy when it comes to AI driven investment theses.

https://twitter.com/Ronxyz00/status/1975181052994867379

https://twitter.com/NorthmanTrader/status/1975199212972159469