Conviction Founder Bets Big on AI Before It Was Hot

Before the AI gold rush, Conviction's founder was already sifting through the sands. Their early investments in names like Harvey, Cognition, and OpenEvidence have now catapulted into the multi-billion-dollar club. This kind of foresight doesn't just happen. It's a calculated risk that's now paying off in spades.

Spotting Potential Before the Frenzy

Backing AI startups before they hit the spotlight requires more than just an eye for innovation. It demands a true understanding of the AI landscape, which, let's be honest, is rife with more vaporware than viable products. Yet, Conviction managed to pick winners. Harvey, Cognition, and OpenEvidence weren't household names when the money started flowing, but they're now basking in the limelight of billion-dollar valuations.

Why does this matter? Because identifying potential in the nascent stages of AI development offers a blueprint for future investors. It's not about slapping a model on a GPU rental and calling it a day. The intersection is real. Ninety percent of the projects aren't.

The Impact on the AI Marketplace

As these companies grow, they inevitably reshape the AI marketplace. But here's the catch: increased market valuation doesn't necessarily equate to increased market value. In the AI world, the true test lies in inference costs. Show me the inference costs, then we'll talk about real impact.

These companies are proving that AI can be both a buzzword and a tangible asset. they're setting a precedent, challenging other startups to rise above vaporware. And that's a narrative the AI industry desperately needs.

Future of AI Investment

So, what's next for AI investments? If Conviction's track record is anything to go by, it's clear that throwing money at every new AI startup won't cut it. Investors need to dig deeper, prioritize foundational tech, and focus on scalable solutions. After all, if the AI can hold a wallet, who writes the risk model?

Conviction's success story isn't just about making smart investments. It's about reshaping how we value AI startups. A reminder that in this fast-evolving field, the real winners will be those who understand the tech beneath the buzz.