Perspectives on AI Investing and Venture Capital

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November 2025

Welcome to The Cirrostratus Group November newsletter. Happy Thanksgiving!

Gartner has recently released the Magic Quadrant for AI Application Development Platforms. No surprises with Google, AWS, Microsoft and IBM as leaders and Open AI as a visionary. The more interesting part is the plusses and minuses of each of those vendors and the associated features. You can get a free copy of this Magic Quadrant from Google.

There are many different reports and research available on how AI is being used. This HBR article gives a perspective on how to read these reports critically. It also provides some information where different research gives an entirely different view. One example is the difference on the reported use of AI for writing code. Anthropic reports 36% of use cases are for coding and Open AI reporting that 4% of use cases are for coding. Why? An excellent article on how to look at bias, perspective and collection and reporting methods.

Paul Ressler

The Cirrostratus Group

Perspectives on AI Investing and Venture Capital

In this article Andy Wu, Harvard Business School professor, talks about the lack of a profitable business model in most AI companies and whether this should be a concern at this point.

AI has impacted venture capital in multiple ways. Most, if not all, VC investments in technology have AI incorporated into the product. But generative AI is also affecting how VC firms evaluate their investments. The use of AI in pitches to VCs has increased the quantity of pitches and has increased the number of pitches at both the high quality end and the low quality end with fewer in the middle. Just like in many uses of AI, it can either make something good much better or it can quickly create something of low quality. This article makes for an interesting read if you're wondering how AI has impacted VC investing.

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