AI mega-rounds are pushing venture capital into fewer, bigger bets

In short: Venture capital is shifting toward fewer, much larger funding rounds for AI start-ups, which makes it harder for many investors to spread risk.

What's going on

Venture capital, the industry that funds young companies, is seeing deals get bigger while the total number of deals falls. According to CB Insights, funding rounds over $100 million made up four-fifths of global fundraising in the third quarter of 2026.

A big reason is that AI start-ups are asking for larger checks and often raising money more than once. That changes how venture capital firms invest. The usual approach is like buying many lottery tickets, since most start-ups fail but a few can succeed big. When there are fewer deals and each one costs more, investors have to put more money into each bet.

Large firms with deep pockets are leaning into this. The Financial Times points to Kleiner Perkins raising $3.5 billion across two AI-focused funds. It also cites Andreessen Horowitz adding a $1.1 billion “Machine Age” fund aimed at building the physical things AI needs, like data centers and other equipment.

Competition is also changing. The article notes that corporate investors, including chipmaker Nvidia, have been buying stakes in start-ups such as Doctolib and Cloverleaf. These companies can offer money plus access to scarce computing hardware (like offering both cash and a key part needed to run AI).

What to watch

Smaller venture firms may respond by cutting costs, making faster decisions, and using AI tools to help with research and paperwork. Another possible shift is more investing in very early, higher-risk teams that are still mostly an idea. If start-ups stay private longer, investors could be stuck with large bets for longer too.

Source: Financial Times