Updated

Updated · The New York Times · Jul 30

Venture Capitalists Embrace AI Bubble as Fuel for Startups and Infrastructure in 2026

Updated

Updated · The New York Times · Jul 30

Venture Capitalists Embrace AI Bubble as Fuel for Startups and Infrastructure in 2026

3 articles · Updated · The New York Times · Jul 30

Silicon Valley venture capitalists are arguing that an AI bubble could help rather than hurt, saying the current frenzy can speed funding for startups and core technology build-out.
Investors such as Theory Ventures' Tomasz Tunguz say tech bubbles are a recurring part of innovation, accepting some capital destruction as the price of building crucial infrastructure.
Touring Capital's Samir Kumar said a purely rational financing model would likely underfund major platform shifts, leaving breakthrough technologies without enough money, talent and attention.
That view pushes back on warnings from Michael Burry, economist Dean Baker and JPMorgan CEO Jamie Dimon, who have all cautioned that AI enthusiasm may have become excessive.

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