AI venture capital is shifting from frenzy to selectiveness! A tide of cleansing has arrived, and a major reshuffle in the industry may be imminent.

Experts from venture capital firms indicate that as valuations in certain sectors begin to show signs of being overly high, investors should shift their focus to the productivity growth of artificial intelligence companies. Jakub Nitra, founding partner at venture capital firm Purple Ventures, stated: As investors become much more stringent in determining where technology creates real value versus where it is merely packaging a function into a business, we may see a major shake-up in the industry. He anticipates that in the next 6 to 12 months, capital will become much more selective. The wave of AI continues to reshape the market. Investors are increasingly directing funds to semiconductor companies outside of Nvidia, betting that the construction of AI data centers will benefit a broader range of chip manufacturers and infrastructure companies. That said, concerns about a bubble remain, as the investment in capital expenditures shows no sign of slowing, and the high-growth ceilings raise doubts about the sustainability of such expansion. David Ng, co-founder and CEO of wealth management firm Arki Finance, stated: The next question is whether the application end and end users can generate enough productivity, revenue, and cash flow to justify this investment. Nitra pointed out that while AI has the potential to transform the economy, not every company that mentions AI in its business plan "deserves an extraordinarily high valuation." He added, The true winners will be those companies that leverage AI to tackle high-cost and extremely complex problems. For instance, Nitra cited one of his portfolio companiesTASS Vision, which deploys edge AI and cameras to analyze customers' movement patterns in physical stores, thereby providing retailers with actionable data to improve their businesses. Shane Chesson, founding partner of asset management firm Openspace Capital, believes that even in the presence of a bubble, there will ultimately be positive outcomes. If the bubble does burst, it mainly harms those who invested in the inflated bubbles driven by a fear of missing out (FOMO), he said, but the infrastructure that has already been built will continue to be used and will prove to bring disruptive changes to many companies.