AI Avalanche: Startups Skyrocket, Warnings Waver
Artificial intelligence (AI) startups are attracting massive venture capital, yet top investors have warned that early-stage companies are being valued unusually high. The caution was voiced on Friday at the Milken Institute Asia Summit 2025 in Singapore, Reuters reported.
Brian Yeo, Chief Investment Officer of Singapore’s sovereign wealth fund GIC, stated, “There is a bit of a bubble-like situation in early-stage venture. Now, any startup that tags itself with ‘AI’ sees its valuation skyrocket, even though actual revenue is minimal.”
According to PitchBook data, AI startups globally raised $73.1 billion in venture capital during the first quarter of 2025, accounting for nearly 58 percent of total investment. Multiple major funding rounds, including OpenAI’s $40 billion raise, have contributed to this growth surge.
Yeo cautioned, “Market expectations may be far beyond the technology’s actual capabilities. Today we are witnessing a major AI capital investment boom, which is masking some underlying economic weaknesses.”
