NYTimes: “As venture firms double down on their deal making, there is less appetite for investing in general A.I. systems designed to do everything, because that work is dominated by established companies like OpenAI and Google. Instead, they are starting to focus on A.I. that does specific tasks, like Ribbon, a company that does A.I. for job interviews, and Eleos Health, which creates A.I. to record and summarize doctor visits. Tech companies acknowledge that they may be overestimating A.I.’s potential. But even if the technology falls short, many executives and investors believe, the investments they’re making now will be worth it. “Christopher Columbus thought he was headed to the Orient, and he ended up in the Caribbean,” said Mr. Nicholson of Page One Ventures. “He did not get to where he thought he was going, but he still got to a place that was highly valuable.””
ICONIQ: “Top-quartile ARR growth among $25M-$100M ARR companies increased to 93% YTD in 2025, up from 78% in 2023. AI-Native companies achieve significantly higher funnel conversion rates, especially from free trial/proof-of-concept phases ($100M+ ARR companies: 56% vs. 32% for others). Overall AE quota attainment remains flat (58% YTD in 2025 vs. 59% in 2024).”
Economist: “Jamin Ball of Altimeter Capital, a VC firm, notes that companies experiment with many AI applications, which suggests they are enthusiastic but not committed to any one product. He quips that this “easy-come, easy-go” approach from customers produces ERR, or “experimental run rate”, rather than ARR. Others note that churn is often upwards of 20%. It doesn’t help that, in some cases, AI startups are charging based on usage rather than users, which is less predictable. Add to this the fact that competition is ferocious, and getting more so. However fast an AI startup is growing, it has no guarantee of longevity. Many create applications on top of models built by big AI labs such as OpenAI or Anthropic. Yet these labs are increasingly offering applications of their own. Generative AI has also made it easier than ever to start a firm with just a few employees, meaning there are many more new entrants, says Max Alderman of FE International, an advisory firm.”
Mint: “If India’s middle class stays on the margins of its growth story, the economic consequences could be significant. Domestic demand may stay fragile, increasing reliance on public investment and exports. Inequality risks would deepen if growth benefits just the wealthy, while consumer-facing sectors would grapple with weak demand and stunted expansion potential. A persistently cautious middle class may have social and political ramifications. Rising aspirations without economic security often leads to public frustration and mistrust in institutions. This could make it harder to turn growth into broad-based prosperity.”
