Tariffs Threaten Silicon Valley’s AI Gold Rush

A stock market rout triggered by President Donald Trump’s tariffs on Chinese and European goods is threatening to end the artificial intelligence–powered gold rush that has buoyed Silicon Valley for more than two years.

Eric Bahn, a co-founder of early-stage venture firm Hustle Fund, is advising startups the firm has backed to be more cautious with spending and to purchase any hardware, like laptops or phones, before prices increase.

“The safest modus operandi is to assume your last [venture capital] fundraise is indeed your last one for a while,” he wrote Monday in a memo to portfolio companies, a group that includes website design provider Webflow and consumer finance app NerdWallet.