AI Investment Boom is "Over," Reports Suggest Slow Deflation
A Morningstar analysis cited a decade-high rate of venture down rounds and widespread enterprise pilot failures as signs of a cooling market.
A Market in "Slow-Motion Deflation"
The artificial intelligence investment boom is over, according to a report from Morningstar. The analysis argued that the market is not experiencing a dramatic pop like the dot-com crash but is instead undergoing a "slow-motion deflation." This process is characterized by a quiet reshaping of the investment landscape, with casualties already piling up among startups and corporate adopters. The report suggested the debate should no longer be about if an AI bubble will pop, but about navigating the fact that it is already happening.
Key Data Points from 2025
The analysis pointed to …
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