VCs are growing wary of ‘AI-washing’ – but real innovation is still winning investors
AI Summary1 min read
TL;DR
VC investment hit a 10-quarter high in Q1 2025, driven by AI, but investors are now wary of 'AI-washing' and focusing on real innovation.
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Venture capital investment surged to a 10-quarter high of €108.3bn in Q1 2025, fuelled by artificial intelligence, which accounted for over €44.6bn raised. In recent years, AI has felt like a money-printing machine. Investors, eager to avoid missing out on the next big thing, were quick to back almost any startup that mentioned AI in their pitch deck. The idea didn’t need to be particularly well-implemented or useful. In some cases, even the illusion of innovation was enough to earn a unicorn valuation. But investors are now wising up to AI-washing. As the CEO of Gradient Labs — an AI…
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