Three top investors: AI frenzy in California shows worrying patterns

Three leading venture capitalists have publicly discussed what is happening in the artificial intelligence investment market. According to them, a dangerous groupthink bubble has emerged in San Francisco, where youth is replacing experience.

San Francisco is gripped by euphoria surrounding artificial intelligence startups, a situation that is making even seasoned venture capitalists uneasy. Three top investors have spoken publicly about how the AI frenzy has distorted investment logic and created worrying behavioural patterns across the entire sector.

Youth before experience

One of the investors described the situation ironically: "If you're 22 years old in San Francisco and building something in the AI space, you might already have a seed funding offer in your mailbox — but if you're 19, oh my goodness, that means you're really talented; you might already have a Series A offer." This comment reflects a broader trend where investors are rushing into deals out of fear of missing the next big thing.

The problem is not just about age — it is symptomatic of a deeper question: whether valuations in the AI sector are based on real business models or speculative optimism. According to venture capitalists, groupthink has reached a level where critical questions go unasked because everyone fears appearing "outdated" or "lacking vision".

Bubble or reality?

In the view of these investors, scepticism about AI does not mean the technology itself is not real — quite the opposite, artificial intelligence is advancing rapidly and its impact is significant. The question is rather whether current valuations and investment pace are sustainable. Earlier technology bubbles — the dotcom boom in the 2000s, the blockchain craze of 2017–2018 — showed that even the right technology can be surrounded by wrong pricing.

From the conversation between the three investors, a common concern emerged: funding for AI startups has become so fast and emotional that thorough due diligence is often skipped. Within the sector, there is mounting pressure to rush, meaning some funds are making decisions in hours rather than weeks.