Billion-Dollar Startups Face Value Cuts as AI Era Emerges

Venture capital funding has significantly shifted since the arrival of ChatGPT, impacting startups valued over $1 billion. Nearly half of the 857 U.S. 'unicorns' haven't secured fresh funding in three years, resulting in average valuation declines of 68% for those last funded in 2021 and 52% for those in 2022. This situation has left over 220 companies termed as 'fallen unicorns,' unable to keep pace with the advancements driven by AI. As AI-focused firms receive heavy investment, traditional startups struggle to remain competitive.