As the flood of capital into AI continues to accelerate, some investors are taking a different approach that goes deeper than chatbots and headline-grabbing language models.
In a recent Pensions & Investments article by Ryan Prete, Alpha Partners Managing Partner Steve Brotman shared why Alpha is doubling down on companies applying AI to real-world problems far outside the hype cycle.
“We’ve been focused on AI companies that are not competing with language model capture,” Brotman told P&I. “They’re going after segments with technology that would be very hard for an OpenAI to replicate.”
Case in point: Exodigo, an Alpha-backed company that combines multisensor hardware with AI to create 3D maps of underground infrastructure. With construction spending topping $100 billion annually, Brotman sees massive potential for AI to streamline the way we scan, build, and maintain the physical world. Exodigo recently closed a $96 million Series B.
Also highlighted was Pearl, another Alpha investment, which uses AI to assist dentists in reading X-rays and making more accurate diagnoses, an application-layer innovation that improves clinical decision-making while reducing diagnostic error. Pearl closed a $58 million Series B round last year.
The article notes a broader trend among VCs toward agentic and application-layer AI, which are sectors requiring less capital but delivering tangible results. With $73.6 billion already raised across AI deals in Q1 alone, investors are now chasing specialization, not just scale.
At Alpha, we believe the most valuable AI companies won’t just talk like humans—they’ll solve problems humans can’t. Whether it’s helping engineers see beneath the surface or doctors see between the lines, the next great AI wave will be built on use cases, not just tokens.
Read the full article in Pensions & Investments here.
