Boom or Bust? Top AI Investor Reveals the Future of AI Startups

Which strategies separate the AI startups that thrive from those that die? Today on Digital Disruption, we’re joined by Jeremiah Owyang, a venture capitalist at Blitzscaling Ventures. Jeremiah, a longtime Silicon Valley native, leads investments in early-stage AI startups at Blitzscaling Ventures. He focuses on startups with the potential for rapid scale and enduring leadership in valuable markets. He also organizes the popular Llama Lounge: The AI Startup Event Series. As a speaker, Jeremiah forecasts how early-stage technology will reshape business and society and advises audiences on how to turn disruption into advantage. Jeremiah sits down with Geoff to unpack the reality of Silicon Valley’s AI gold rush. With more than 38,000 AI startups competing for attention, thin technical moats, and the looming threat of consolidation, founders face more pressure than ever to stand out. He shares insider insights on why most AI startups are vulnerable to being wiped out by a single update from @OpenAI or Google, which industries and roles are most at risk of automation, and why critical thinking remains one of humanity’s most valuable advantages. The conversation also explores how Gen Alpha, the first AI-native generation, will grow up and work differently than any before, as well as the rise of AI agents and their impact on everyday work. In this video: 00:00 Intro 01:45 The AI startup explosion 04:30 Why most AI startups will fail without real advantages 07:10 One OpenAI update could destroy your startup overnight 10:25 Thin technical advantages and the search for moats 13:40 What VCs look for in AI startups 17:05 The rise of Lean AI startups 20:15 AI agents and the automation of entry-level jobs 23:50 The skills humans still need 27:10 Gen Alpha: The first AI-native workforce 30:20 AI’s role in corporate strategy and decision-making 34:00 The Risks of over-reliance on AI in business 37:25 From Gold Rush to shakeout 41:10 How CEOs can future-proof their companies in the AI era 45:30 Humanoid robots, agents, and the next wave of disruption 49:15 Winners and losers in the AI economy Connect with Jeremiah: Website: https://web-strategist.com/blog/about/ LinkedIn: https://www.linkedin.com/in/jowyang/ Instagram: https://www.instagram.com/jowyang/ X: https://x.com/jowyang Visit our website: https://www.infotech.com/ Follow us on YouTube: https://www.youtube.com/@InfoTechRG