In the first quarter of 2025, artificial intelligence startups attracted a total of $73.1 billion in investment, accounting for 57.9% of global venture capital funds.
However, experts warn that this rapid rise brings with it the risk of a “bubble.” Bryan Yeo, the investment chief of Singapore’s state fund GIC, stated in a speech at the Milken Institute Asia Summit that “every company bearing the AI label is receiving investment at exorbitant valuations,” and that this is not healthy. Some early-stage startups, with revenues in the millions, are being valued between $400 million and $1.2 billion, causing concern among investors. TPG Chairman Todd Sisitsky found this situation “breathtaking,” but stressed that it created a “dangerous fear of missing out” (FOMO) for investors.Massive deals like OpenAI’s $40 billion investment round have further fueled market expectations. However, according to experts, the technology is not yet at a level to meet these expectations.
In short, the “rapid rise” in AI investments, while offering great opportunities, also creates a potential bubble risk.
