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VCs Deploy ‘Kingmaking’ Strategy to Crown AI Winners in Their Infancy

Venture capital firms are increasingly using oversized early‑stage investments to shape the nascent artificial‑intelligence market. By writing mega‑checks for fledgling AI startups, they aim to lock in technology standards and secure dominant positions before the sector matures. This "kingmaking" approach mirrors historic category‑building tactics but is amplified by the speed and scale of AI development. The trend is evident in recent funding rounds for companies such as Anthropic, Stability AI and xAI, where capital inflows dwarf traditional seed financing.