AI Investment "Bubble" or "Golden Age"? VCs' Favorite Sectors in 2026
AI investment continues heating up in 2026, but Wall Street is divided. While "AI bubble" warnings grow louder, ZhenFund partner says "golden age just beginning." Where is VC money flowing?
Silicon Valley — The AI investment market in 2026 is experiencing a "fire and ice" division.
On one hand, Wall Street's "AI bubble" warnings are growing louder. Nvidia's market cap rollercoaster, Google's AI product monetization struggles, OpenAI's profitability遥遥无期——all these make investors nervous.
On the other hand, ZhenFund partner Fang Aizhi publicly stated: "AI's golden age is just beginning, the next decade is an upward cycle."
What Are VCs Looking At?
To answer this question, let's see where money is flowing.
According to latest data, Q1 2026 global AI financing exceeded $50 billion, with biggest winners including:
AI Infrastructure: Data centers, chips, optical communications — 40% of financing
Enterprise AI Applications: Legal, finance, healthcare — 25%
Consumer AI Products: AI hardware, AI assistants — 20%
AI Security: Anti-hacking, deepfake detection — 15%
AI Infrastructure: Data centers, chips, optical communications — 40% of financing
Enterprise AI Applications: Legal, finance, healthcare — 25%
Consumer AI Products: AI hardware, AI assistants — 20%
AI Security: Anti-hacking, deepfake detection — 15%
"Infrastructure is most certain," said an anonymous Silicon Valley VC partner. "Like selling shovels during gold rushes — never loses money."
Why "Golden Age"?
Fang's optimism is not without reason.
First, AI is moving from "concept" to "revenue." Enterprise AI market growing 60%+ annually, countless companies willing to pay for efficiency.
Second, AI talent is "下沉." What required PhDs before, now undergrads trained for months can do. More talent supply, lower costs, application explosion.
Third, AI is "走出硅谷." From Shenzhen to Bangalore, London to Tokyo, global AI entrepreneurship is rising. Bigger market, more opportunities.
Bubble Camp Concerns
But cautious investors have their reasons.
"OpenAI raised $40 billion, still no profit," a hedge fund manager said. "Is this normal?"
His concern is valid. In tech history, there are many cases of "era-defining technology" ending up "mess" — VR, metaverse, Web3...
"Difference is, AI is actually creating value," the manager added. "But value creation and valuation are two different things."
Data Behind Investor Division
Let's look at some specific numbers:
2025 AI company median revenue growth: 120%
2025 AI company median burn rate: up 80%
2025 AI companies turning profit: less than 5%
2025 AI company median revenue growth: 120%
2025 AI company median burn rate: up 80%
2025 AI companies turning profit: less than 5%
"It's like 2015 SaaS," analyzed a serial entrepreneur. "At first everyone burns money to grab market, later survivors make fortune. AI will be the same."
What Happens Next?
So, will AI investment "bubble burst" or "continue soaring"?
Answer may be between both.
"AI won't crash because tech value is real," the VC partner said. "But won't keep rising forever. Always corrections, then continue rising. Like internet in 2000."
O2O in 2015, blockchain in 2018, metaverse in 2022 — every "bubble" burst, companies survived and became giants.
AI may be no different.
Reference: GlobeNewswire, Wellows, Analytics Insight