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AI venture capital shifts to deep tech understanding, spending millions on model access

Activate AI, a $75 million venture fund focused exclusively on artificial intelligence, is changing its investment strategy to prioritize deep technical understanding. Co-founder Pratyush Choudhury believes that to identify the next generation of AI unicorns, investors must grasp the underlying technology, not just business fundamentals. This approach involves actively experimenting with frontier AI models, consuming vast amounts of tokens daily, and engaging with researchers to understand the rapid advancements and their implications. AI

IMPACT This shift in VC strategy highlights the increasing importance of technical expertise in AI investing, potentially accelerating the growth of technically advanced startups.

RANK_REASON Venture capital fund's strategic shift and significant investment in AI startups. [lever_c_demoted from significant: ic=1 ai=0.7]

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AI venture capital shifts to deep tech understanding, spending millions on model access

COVERAGE [1]

  1. Rest of World TIER_1 English(EN) · Ananya Bhattacharya ·

    How one VC burns through hundreds of millions of tokens a day to find the next unicorn

    The investor behind a $75-million AI-focused fund explains why reading research papers and testing frontier models has become part of his job.