In a new Crunchbase op-ed, Alpha Partners Managing Partner Steve Brotman pushes back on the idea that today’s AI surge is unsustainable. While nearly half of global startup funding this year has gone to AI, Steve writes that the warning signs many point to actually indicate that “we’re in the early stages of a generational platform shift rather than at the end of a speculative bubble.”
Steve notes that massive AI infrastructure rounds are laying the technical foundation for the next wave of platforms. In Q2 alone, global venture funding reached $91 billion, with roughly $40 billion going to AI companies.
He also highlights that many AI companies are already delivering measurable economic value. EliseAI, Valence, and Exodigo (discussed in the op-ed and part of Alpha’s portfolio) are automating major workflows, improving productivity, and preventing costly infrastructure mistakes. As Steve writes, these companies “are generating measurable and scalable ROI for customers,” which stands in sharp contrast to past speculative tech cycles.
The op-ed also outlines why this moment matters for long-term investors. Tech has risen from 1%-2% of GDP to 14% today and “could very well be 28%-50%” in the decades ahead. And enterprise AI companies are hitting $20 million in revenue “in closer to two years,” growing well above 200% and reaching profitability significantly faster than SaaS companies did.
Steve concludes that the venture market “isn’t shrinking around a few giants; it’s opening new frontiers at remarkable speed.” The biggest opportunities are emerging in the vertical application layer where disciplined, ROI-driven AI companies are being built right now.
Read the full op-ed here.
