US-based venture capital has largely remained unchanged for decades, relying on traditional models and fee structures. However, the rise of AI is disrupting these norms by lowering the cost and time of starting tech companies, making solo founders and capital-efficient startups more common. While large AI infrastructure firms attract immense capital, many smaller AI startups achieve rapid revenue growth without venture funding. The conventional VC process, long key to resource access and market entry, is challenged as AI tools level informational advantages. Yet, venture capital remains crucial for massive-scale AI projects and sectors demanding deep financial resources. Ultimately, as AI enables more founders to build significant ventures independently, the traditional VC model faces a shrinking role.
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