VCs Who Bet $300 Billion on AI Say DeepSeek Will Fuel Industry

Venture capitalists have sunk more than $300 billion into US artificial intelligence startups in the past five years — a massive outlay that’s been called into question this week by the release of the new cheap and efficient model from Chinese AI company DeepSeek.

DeepSeek has already roiled the public markets, with investors sending the Nasdaq down 3% on Monday, the equivalent of a $1 trillion haircut. And because so many Silicon Valley VCs have gone all-in on AI, according to PitchBook data, private markets could be even more exposed.

But venture capitalists at firms including Battery Ventures, Andreessen Horowitz and Menlo Ventures are not fazed. ...