AI startups captured 81% of Q1 2026 venture funding at $297 billion, putting over 1,500 pre-ChatGPT unicorns at risk of down rounds and valuation cuts.

In the AI arms race, Claude is surging ahead of ChatGPT.

The AI boom that has funneled more than $250 billion into OpenAI and Anthropic has left hundreds of startups built before ChatGPT's arrival in 2022 stranded.

AI startups captured 81% of Q1 2026 venture funding at $297 billion, putting over 1,500 pre-ChatGPT unicorns at risk of down rounds and valuation cuts.

More than 220 former unicorns have lost their billion-dollar status as AI redirects venture capital, with SaaS firms hit hardest and 2021-era startups worth 68% less.

Investors are now focusing on artificial intelligence (AI) startups, and unfortunately India has few credible companies in this segment.

Companies including SpaceX, Anthropic and OpenAI are seeking fresh capital as AI development costs soar, with some losing billions while public giants like Google, Meta and…