Find XO: AI Causes Seed Valuations to Reach 40 Million USD (techcrunch.com)

- Recently, in Y Combinator batches, AI teams receiving seed funding at valuations of 40 million USD have become quite common. - When a startup has the AI label, its valuation is definitely higher compared to non-AI companies. - The challenge is at Series A. - The higher the seed valuation, the higher the sales and customer metrics that must be proven before the next round. - Only teams that solve specific industry bottlenecks inexpensively, rather than competing head-on with general-purpose models, can withstand this premium.