Artificial intelligence startups are attracting record levels of venture capital, but leading investors warn that valuations may be entering bubble territory. Speaking at the Milken Institute Asia Summit 2025, GIC’s Chief Investment Officer Bryan Yeo said that “any startup with an AI label” is fetching high valuations regardless of revenue.
According to PitchBook, AI startups raised $73.1 billion in Q1 2025, representing nearly 58% of global venture funding. Much of this surge was fueled by mega deals such as OpenAI’s $40 billion capital raise.
TPG President Todd Sisitsky noted that while some AI firms reach $100 million in revenue within months, others command valuations as high as $1.2 billion per employee — a trend he described as “breathtaking.” Investors cautioned that hype-driven funding may outpace the sector’s real capabilities, raising risks for the broader economy.
