Greg Gretsch: Venture Capital in the AI Supercycle

The current Silicon Valley boom, fueled by an AI Supercycle, is fundamentally reshaping startup formation, venture capital sourcing, and corporate strategy. Unlike previous market cycles, AI integration is accelerating productivity and enabling horizontal expansion for software companies, though it simultaneously creates significant job dislocation and challenges for entry-level roles. Venture capital firms are increasingly adopting AI-native strategies, such as student-led accelerators, to identify early-stage opportunities while navigating a landscape where the cost of building software has dropped precipitously. As private markets see massive capital inflows into companies like OpenAI and Anthropic, the traditional IPO path is shifting, with higher revenue thresholds required for public entry. Boards must now prioritize evaluating how companies integrate AI into their operations, manage existential risks from frontier models, and maintain sustainable differentiation in a rapidly evolving, AI-driven economy.