In a video discussion, SaaS investor Jason Lemkin and Scale GP Rory O'Driscoll examine the state of and AI investing. They explore whether valuations for AI companies have become disconnected from reality, citing CoreWeave as a potential sign of trouble, and discuss why venture firms are chasing only billion-dollar outcomes.
The conversation covers specific AI companies including Anthropic, whose $1.5 trillion valuation is questioned despite slowing growth, and Modal, which recently hit a $15.75 billion valuation. They also examine whether traditional software companies like Replit and Bending Spoons represent alternative paths to success outside the mega-fund cycle.
They debate whether the private AI market has diverged from public market valuations, whether seed investing has become harder than growth investing, and what signals suggest either a venture boom or a correction ahead.
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