AI Perspectives
Valuation discipline in the AI boom: lessons from past cycles
Every technology boom produces both lasting giants and expensive mistakes. How we stay disciplined while investing in AI.
Technology booms follow a familiar pattern. Real breakthroughs attract capital, capital inflates valuations, and a correction separates companies with durable economics from those that only had momentum.
AI is a genuine platform shift, but that does not make every AI company a good investment. We price companies on evidence: revenue quality, retention, gross margin after model costs and the speed at which the product improves with use.
Our edge is entering early in unconventional markets, where competition for deals is lower and valuations are grounded. We would rather own a meaningful share of an overlooked agent company than a sliver of a crowded one.
Frequently asked questions
Is AI a bubble?
AI is a real platform shift, but valuations in parts of the market may overshoot. Investors should focus on revenue quality, margins and retention rather than momentum.
