VCs Only Fund AI Now
In today's newsletter:
- VCs only fund AI now. Everything else, good luck.
- OpenAI’s Pentagon deal has people nervous and canceling ChatGPT
- America loves AI, just not the data centers next door
- Countries are now racing to control AI research
VCs Only Fund AI Now. Everything Else, Good Luck.
In February alone, about $189 billion went into startups, and almost all of it went straight into AI. Most of that cash didn’t spread across thousands of startups. It piled into just a few giants like OpenAI, Anthropic, and Waymo.
Imagine showing up to a pizza party and three guys eat 90% of the pizza while everyone else fights over the last crust.
That’s basically the startup funding market right now.
If all the money is flowing into AI, what happens to every other startup? Fintech, SaaS, or consumer apps?
Are they suddenly the kids nobody picks for dodgeball?
OpenAI’s Pentagon Deal Has People Nervous and Canceling ChatGPT
Some people are rage-canceling ChatGPT and downloading Claude after news broke that OpenAI is working on a deal with the U.S. Pentagon. Suddenly people are acting like they just realized tech companies work with the government.
Shocking, right?
Social media lit up with “Cancel ChatGPT,” while Claude shot to the top of the App Store.
The real eyebrow-raiser is the Pentagon deal. The U.S. wants AI for defense, and OpenAI is starting to look less like a Silicon Valley startup and more like a defense contractor.
OpenAI has already started changing parts of the agreement to calm the backlash, but critics say it may not be enough.
America Loves AI, Just Not the Data Centers Next Door
AI data centers are starting to cause the kind of fights in America that used to be reserved for oil pipelines and Walmart superstores. One example is in North Carolina, where a giant new AI data center proposal has turned into a political brawl.
These things use insane amounts of electricity, tons of land, and a lot of water to keep the servers cool.
So people are asking a very simple question: are we building the future of AI or a very expensive space heater that quietly raises everyone’s power bill?
The weird part is that everyone loves AI when it’s just an app on their phone. But the moment a massive warehouse full of humming computers shows up next door, suddenly nobody’s excited anymore.
So who should carry the cost of powering the AI future everyone wants?
Countries Are Now Racing to Control AI Research
The UK just dropped $51 million on a new government AI research lab as part of a $2 billion national AI strategy. The goal is to make AI safer, fix hallucinations, and build their own breakthroughs instead of depending on American tech companies.
At the same time, a global AI talent war is heating up. London is becoming a major hub thanks to groups like DeepMind and top universities.
Governments are also rushing to regulate AI, with 1,000+ laws proposed worldwide as AI spreads into finance, healthcare, courts, and defense.
Countries now see AI as critical infrastructure, economic power, and even military advantage, which is why nations like Saudi Arabia, Brazil, the UK, the EU, China, and the U.S. are pouring billions into it.
How to Make Yourself Impossible to Replace in the Age of AI. Get the roadmap.
Disclaimer: This newsletter is for informational purposes only. Details may change or come from third-party sources; always do your own research and consult a qualified professional before making decisions.
