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AI Frenzy: Billionaire Warns of Sky-High Valuations
23 Jan
Summary
- Venture firms are intensely investing in AI stories due to FOMO.
- AI may disrupt less than half of software companies.
- Thoma Bravo sees AI as transformational for enterprise software.
Valuations for artificial intelligence startups have surged to unprecedented heights, largely propelled by venture capital firms experiencing intense fear of missing out on the next major investment. Orlando Bravo, co-founder of Thoma Bravo, highlighted this phenomenon, stating that firms are eagerly investing in any AI-related story they can find.
Bravo's firm, which manages approximately $180 billion in assets and has a portfolio heavily weighted towards technology, believes AI will be "transformational" for enterprise software. However, he also cautioned that AI is expected to disrupt a substantial percentage of software companies, particularly those whose primary strengths lie in technical expertise.
