VCs deploy ‘kingmaking’ strategy to crown AI winners in their infancy

TechCrunchWednesday, December 3, 2025 at 8:24:12 PM
  • Venture capitalists (VCs) are intensifying their 'kingmaking' strategy, making substantial investments in early-stage artificial intelligence (AI) startups to establish market leaders. This approach aims to identify and support potential winners in the burgeoning AI sector, leveraging significant financial backing to shape the competitive landscape.
  • This strategy is crucial for VCs as it allows them to influence the direction of the AI market, potentially securing high returns on their investments by backing companies that could dominate the industry in the future.
  • The growing trend of VCs adopting aggressive investment tactics reflects broader concerns about market sustainability, as many startups struggle with 'narrative debt' and the risk of a potential AI bubble. Additionally, the shift in focus from traditional tech models to AI-driven solutions is reshaping investment strategies and market dynamics.
— via World Pulse Now AI Editorial System

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