Source: Fortune
Summary
Artificial intelligence (AI) dominates the investment conversation, with AI and machine-learning deals accounting for nearly two-thirds of all U.S. venture capital dollars in 2025. However, some investors question whether a company needs to be an AI company to be successful. Public markets show that non-AI companies can be strong and valuable, but private markets often favor AI-focused businesses. This creates risk and opportunity for disciplined investors.
Our Reading
The numbers tell one story. AI deals account for nearly two-thirds of all U.S. venture capital dollars. But the market’s focus on AI raises a subtle question: does a company need to be an AI company to be great? The answer is no, according to public markets, where non-AI companies like durable competitive advantages, attractive unit economics, and disciplined execution drive success. The divergence in valuation between AI and non-AI businesses creates both risk and opportunity for investors.
Original observation: In the AI-dominated market, fundamentals still matter, but they’re often overlooked in favor of the latest technology wave.
Author: Evan Null
