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Can someone explain the VC economics behind this during a bubble. Is it

1. Funding for other projects gets diverted to AI

2. Traditional VCs see potential for greater risks, rewards and increases portfolio

3. Funds available to traditional VCs expands ?

4. New VCs jumping on to the hype train.

Is it any of the above or did I miss the mark completely.



All of the above including the regular rotation of realized gains into early stage AI startups.

Rinse and repeat.




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