The Next Big Thing In AI: Where VCs Are Looking Now

The Next Big Thing in AI: Where VCs Are Looking Now

As Founder and CEO of Alumni Ventures, I have a broad vantage point for what’s truly happening at the frontier of artificial intelligence. At Alumni Ventures, one of the most active VC firms globally, we see beyond the headlines, flashy demos, and hype cycles — where the real transformation takes shape. What I’m about to share isn’t just market analysis. It’s intelligence from the frontier, drawn from pitch meetings and deep conversations with founders who are quietly rebuilding the technological foundations of our world.

Today, we’re witnessing a moment strikingly similar to the early days of cloud computing. Back then, success wasn’t just a matter of having the best technology. It was about locking down sustainable business models and creating distribution channels that delivered market-leading value to users. Just as cloud technology winners guided customers through massive shifts in how they used and paid for software, AI winners will help their customers rewrite the rules of human capability itself.

There’s a sense that everyone “knows” AI because we interact with it daily. But insiders laugh at this idea; they say we’ve barely scratched the surface. Today’s most advanced AI systems represent less than 1% of the technology’s potential. The opportunity lies not in the tools themselves but in how they can consistently earn and retain customers by delivering impact. The real revolution isn’t in today’s headlines—it’s in what’s being built behind closed doors.

AI capabilities are evolving so quickly that even the most tech-savvy businesses struggle to keep up. As founders push new features and models, customers need time to integrate and adapt. This leads to friction, an ongoing balancing act between innovation and practical usability.

For investors like us, this mismatch is a signal. Companies that excel aren’t the ones that dazzle in a demo; they’re the ones that bridge the gap between what AI can do in theory and what people and businesses can handle in practice. They create easy adoption paths, focusing on issues people desperately want solved. These companies make life simpler, not more complicated.

To understand where the future is being built, let’s look at four critical battlegrounds shaping AI’s next chapter.

The Window of Opportunity for Visionaries

The window we’re in is unprecedented and unlike mature markets, AI still has room for multiple category leaders. The most successful companies share a distinct pattern:

Because AI is still early, it is not yet a zero-sum game and we believe multiple approaches can succeed. We see infrastructure-focused plays, consumer-facing apps, enterprise solutions — all potentially viable. That said, over time, the field will narrow as the market matures and customers gravitate toward a handful of trusted providers.

Your Role in the Revolution

For investors, this moment is a rare opening. It’s still early, which means there’s room to shape the industry, to influence what “value” means in AI, and to define what a winning model looks like. You can look at a variety of strategies, see which ones gain traction, and get ahead of the curve before the industry converges around a few proven models and platforms.

The next 24-36 months will likely determine the winners in this new era. For visionary investors, this isn’t just about returns — it’s about being part of humanity’s next great leap forward. As you consider your role in this transformation, ask yourself: Do you want to watch the AI revolution unfold, or help shape its direction?

Those who seize this opportunity may end up with more than a hot startup or a quick return. They’ll help shape the future of how we live and work — and in that future, the hardest-working, most thoughtful players will define what AI means for everyone else.

Take Action

Connect with your Alumni Ventures representative to learn how you can participate in our next fund. The future is being built now — and it’s being built by those who dare to think beyond the obvious. From our vantage point at Alumni Ventures, it’s going to be a thrilling ride. Let’s see who’s ready to strap in and build not just a cutting-edge product, but a long-lasting, meaningful business.

This communication is from Alumni Ventures, a for-profit venture capital company that is not affiliated with or endorsed by any school. It is not personalized advice, and AV only provides advice to its client funds. This communication is neither an offer to sell, nor a solicitation of an offer to purchase, any security. Such offers are made only pursuant to the formal offering documents for the fund(s) concerned, and describe significant risks and other material information that should be carefully considered before investing. For additional information, please see here. Venture capital investing involves substantial risk, including risk of loss of all capital invested. Example portfolio companies are provided for illustrative purposes only; not necessarily indicative of any AV fund or investor. Portfolio companies shown are not available to future investors, except potentially in the case of follow-on investment. This communication includes forward-looking statements, generally consisting of any statement pertaining to any issue other than historical fact, including without limitation predictions, financial projections, the anticipated results of the execution of any plan or strategy, the expectation or belief of the speaker, or other events or circumstances to exist in the future. Forward-looking statements are not representations of actual fact, depend on certain assumptions that may not be realized, and are not guaranteed to occur. Any forward-looking statements included in this communication speak only as of the date of the communication. AV and its affiliates disclaim any obligation to update, amend, or alter such forward-looking statements, whether due to subsequent events, new information, or otherwise.