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AI Shakes Up Tech Markets: $1 Trillion Wiped Out
12 Feb
Summary
- AI and market dynamics caused a $1 trillion value loss in software stocks.
- Seligman Ventures launches a $500 million early-stage AI investment fund.
- New fund will focus on AI infrastructure, cloud, and cybersecurity.
The technology sector is experiencing significant disruption as AI and shifting market dynamics have led to a $1 trillion decrease in software stock valuations. This downturn has impacted both public and private markets, creating a challenging funding environment. In response to these conditions, Seligman Ventures has announced the launch of a new $500 million fund specifically targeting early-stage artificial intelligence investments.
Led by Umesh Padval, an investor with prior successful ventures, Seligman Ventures plans to adopt a more focused investment strategy, aiming to stay within the $400 million to $800 million range per fund. The firm will concentrate its investments on key areas including AI infrastructure, cloud infrastructure, cybersecurity, and modern data center hardware. This approach aims to identify and nurture promising companies at their inception, seeking substantial returns by investing before later-stage valuations potentially become inflated.
