The VC Firms With the Most to Gain—or Lose—From AI

In the past two years, almost 200 venture capital firms have invested in young generative artificial intelligence companies without knowing exactly how those bets would pay off. Now it seems likely that several won’t.

The technology has created winners such as OpenAI, but it’s also spawned a growing number of startups that could follow Adept AI and Inflection AI, whose founders left the companies to work for tech giants. Then there’s Stability AI, which needed a cash infusion and a leadership change to keep going. Such outcomes can lead to paltry investment returns, and outright failures often wipe out the value of investors’ stakes altogether.