Source: Bloomberg (paywall)
The velocity of AI development has become a legitimate business pressure—not just hype—forcing founders and investors to redirect capital and talent toward AI capabilities or risk irrelevance within 18-24 months. This anxiety is already manifesting in real portfolio shifts: companies pivoting to add AI features, VCs rewriting check theses, and talent flight to AI-focused shops. Consumer startups that can't credibly integrate AI are losing both funding momentum and engineering talent. The fear is rational but also self-reinforcing, creating a tax on the broader startup ecosystem as resources concentrate upstream into foundational AI rather than downstream into products consumers actually want.