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Coders out, VCs in: Investors bet billions on AI-first services

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Coders out, VCs in: Investors bet billions on AI-first services

Business News Tech AI Coders out, VCs in: Investors bet billions on AI-first services

The AI-native services firms’ promise of high margins and rapid growth with fewer people has attracted the interest of VC firms. If Distyl AI raised $175 million at a $1.8 billion valuation a year ago, Wonderful raised $550 million at a $5 billion valuation in September.

Venture capital has never been excited about software services. The human capital-intensive business that grows in single digits most years didn’t quite fit the bill for risk capital that’s perennially in search of outsized returns. AI has changed that.The AI-native services firms’ promise of high margins and rapid growth with fewer people has attracted the interest of VC firms. If Distyl AI raised $175 million at a $1.8 billion valuation a year

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