VCs Chase Hype, Not Diligence, Fueling AI Boom‑bust

I don’t know if there is anything shady going on here or not, but I will say, more generally, that VCs prefer social proof than actual diligence: “XYZ did the A, we must get into the B” or “ARR is growing so fast, we need to get in”. In the final telling, there will be a lot of zeroes in the AI complex as some companies have spectacular rises and falls. When we look back, the reason above will largely explain why.