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Fintech Deals

There's tons of capital but also plenty of signs of stress in AI, according to attendees at the annual Web Summit conference in Lisbon. 

Why it matters: Companies without capital are eyeing the exit, while those with capital are prepping insurance in case the boom goes bust.

Driving the news: Investors expect AI players to deliver revenue growth quickly, leading to faster flameouts — especially among less capitalized businesses.

"100%, we're seeing more [inbound sellers] than before," Reka AI CEO Dani Yogatama told Axios on the sidelines. The foundational model company hit a $1 billion valuation in July.

Cohere, another foundational model company focused on highly-regulated enterprise customers, is eyeing verticalized acquisitions in the AI space.

"I think there's going to be consolidation across each of the verticals, even with some of the early AI-built companies," said Cohere CFO Francois Chadwick.

Zoom out: A trio of AI company founders from Clay, Reka AI, and TensorWave that have each raised over $100 million say funding still feels abundant, even after just raising months ago. 

Yes, but: That abundance isn't felt by all startups as investors concentrate their bets into later-stage players. The top 10 deals of 2025 accounted for some 41.2% of VC funding by the end of August, up from up to 20% before the AI boom, per PitchBook.

What they're saying: "I agree with the concerns around the AI bubble, which we're also worried about. But this is actually why we raised $100 million dollars... and why we have a very capital-efficient business," Clay cofounder Varun Anand told Axios on stage. Clay was recently valued at $3.1 billion. "If a bubble pops, whatever happens, you are in control of your own destiny."

"We think what will happen is over time the players that have achieved some minimum level of scale — you know a gigawatt of capacity — are going to be much better protected," says Darrick Horton, CEO of AI infrastructure company TensorWave.

AI companies put on bubble wrap

Companies without capital are eyeing the exit, while those with capital are prepping insurance in case the boom goes bust.

 Varun Anand, Co-founder & COO, Clay; Dani Yogatama, Cofounder & CEO, Reka; Darrick Horton, Co-Founder & CEO, TensorWave; Lucinda Shen, Deals Reporter, Axios at Web Summit.

From left: Clay cofounder Varun Anand, Reka AI CEO Dani Yogatama, TensorWave CEO Darrick Horton, and Axios Pro Deals reporter Lucinda Shen at Web Summit in Lisbon. Photo: Ramsey Cardy/Sportsfile for Web Summit via Getty Images

There&#x27;s tons of capital but also plenty of signs of stress in AI, according to attendees at the annual Web Summit conference in Lisbon. Why it matters: Companies without capital are eyeing the exit, while those with capital are prepping insurance in case the boom goes bust.

AI companies put on bubble wrap

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