AI investors are preparing for a tougher comeback cycle

The AI funding market has cooled from its most frantic phase, but major investors are still looking for durable companies in the category. Rimer’s view is that capital will return where startups can show real product demand, defensible infrastructure or meaningful distribution.

That shift matters for founders because the bar is moving from narrative to execution. AI startups may still raise aggressively, but buyers and investors are becoming more selective about margins, usage and long-term differentiation.