Artificial intelligence (AI) companies are attracting a disproportionate share of capital inflows compared with other private market sectors. More than 75% of limited partners (LPs) intend to allocate to AI in the next 12 months—more than four times that of blockchain—yet AI exit activity remains relatively subdued, a report from S&P found.
“We’re witnessing unprecedented investor conviction colliding with a closed exit window,” Ilja Hauerhof, New Product Development Director, Private Markets, S&P Global Market Intelligence told Benzinga.
Aside from xAI’s $250 billion acquisition by SpaceX, overall exit activity remains subdued, with funding flows operating on a different scale.
“Fresh capital is moving off the sidelines, supporting large AI funding rounds. The structural imbalance means capital is entering faster than it is leaving. Deployment is now decoupled from exit cycles, with LPs’ intentions reflecting a forward-looking commitment to AI as a transformative platform,” the report said.
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