is this the same situation like the dot com boom where investors were pouring tons of money just because it being a internet company. also i wasn't born until 4 years after the dot com bubble so could consider to explain how it really was and if you were a part of it or right now if you are a part of any ai company
VC mindset-<p>1. Raise a lot of money from LPs (Rich People or Institutions).<p>2. Get ~3% out of the fund for operations and then for every successful exit.<p>3. Fund startups/industries that others are investing into to create a cycle.<p>Now what happens when all the startups are doing bad? Can't deploy capital?
You can't return the cash to LPs saying "OOPs didn't find best startups to fund"<p>Instead you go, "See everyone is investing in AI, so we are also doing it!", LPs happy to be part of a trend and thinks themselves smart while you raise more for your fund. :)