AI startups are now receiving nearly one-third of every venture capital dollar invested, according to CB Insights. Despite this surge in AI investments, venture-firm profits are at a historic low. Venture-capital firms in the U.S. have invested heavily in AI startups, but returns have hit their lowest point since 2011. In 2023, VC firms spent $60 billion more than they returned to investors, marking the largest deficit in 26 years. Investors are hopeful that the Trump administration will make tech acquisition deals easier to improve profitability. AI spending is projected to exceed a quarter trillion dollars next year.