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AI Investments Are Booming, but Venture-Firm Profits Are at a Historic Low


Silicon Valley's venture-capital firms are having an easy time finding promising startups to back. The hard part is cashing out. From a report: Last year, U.S. venture firms returned $26 billion worth of shares back to their investors, the lowest amount since 2011, according to the data provider Pit...

From a report: Last year, U.S. venture firms returned $26 billion worth of shares back to their investors, the lowest amount since 2011, according to the data provider PitchBook. As a result, the investors that back VC firms, such as university endowments and pension funds, aren't seeing the type of profits the industry has long delivered. Much of that money has recently gone to artificial-intelligence startups -- a white-hot space in which valuations are rising fast and companies quickly burn through cash to develop new technology.

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