The views seem to range from bubble-wary to bubble-dismissive. We hashed it all out over eggs and sausages at Fortune’s IRL Term Sheet Breakfast at Brainstorm AI in San Francisco yesterday. This is Amanda Gerut, Fortune’s West Coast news editor, pinch-hitting for my colleague Allie Garfinkle.

Allie hosted five VCs with funds ranging in size from $5 million to $25 billion and views varied across the panel. This group alone is collectively going to deploy anywhere from tens to hundreds of millions over the next decade into companies with AI as a backdrop and these investments will either prove spectacularly right or wrong.

Here’s a roll call:

Jenny Xiao, partner at Leonsis Capital and former researcher at OpenAI, came in with a nuanced take. There’s something of a bubble, but it’s “relatively contained” in the infrastructure layer with overinvestment primarily in data centers, GPUs and in large language model companies. But right now, there’s actually underinvestment in the application layer because there are so many ways AI can make an impact in various enterprises, Xiao said. 

Vanessa Larco, former partner at New Enterprise Associates (NEA) and co-founder of new venture firm Premise, has a contrarian view. “Everyone thinks enterprise is safer,” Larco said. “But I actually think the consumer might, this time around in the current environment, be what survives.” Larco’s reasoning is that if a consumer adopts your AI product, it’s because you’re giving them something faster, “radically cheaper, or much easier to use.” Once you’ve done that and built a brand, it’s very hard for people to quit you. 

Rob Biederman, managing partner at Asymmetric Capital Partners and chairman of Catalant Technologies, had a sobering view. “In every boom, 99% or 99.9% of companies fail, and one or two of them become Amazon or Google,” said Biederman, who had to dash off to catch a flight. Only companies that can systematically create value for customers, which most of them aren’t doing right now, will survive. 

Aaron Jacobson, partner at NEA, said the history of technological innovation “is always overhyped in the near term and underhyped in the long term, and that will be true of AI.” So at some point there will be a correction and there will be cycles of pain around valuation and funding, “but ultimately, in 10 years, we’re going to have a lot of really big, impactful companies.”

Daniel Dart, founder and general partner of Rock Yard Ventures, had the boldest counter to fears about a bubble. He sees a total addressable market we can’t yet imagine. People think self-driving Waymos will replace Ubers, but Dart sees elementary schools and elderly care centers with Waymos waiting out front and that proves to him we’re still in the early innings. 

“You’re really going to tell me there aren’t going to be any trillion-dollar companies in 2030 or 2034? No one here is going to take that bet,” said Dart. “There is going to be so much value creation that it’s like the birth of fire.”

See you tomorrow,

Amanda Gerut
Email:Amanda.gerut@fortune.com
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Venture Deals

– Saviynt, an El Segundo, Calif.-based identity security platform, raised $700 million in series B funding. KKR led the round and was joined by SixthStreetGrowth, TenEleven and existing investor CarrickCapitalPartners.

– fal, a San Francisco-based AI-generated media platform, raised $140 million in Series D funding. Sequoia led the round and was joined by KleinerPerkins, NVentures, and AlkeonCapital.

– Radial, a New York City-based network designed to help patients access advanced mental health treatments, raised $50 million in Series A funding. GeneralCatalyst led the round and was joined by SolariCapital, SLHealthCapital, FounderCollective, BoxGroup, ScrubCapital, and DiedevanLamoen.

– Relation, a London, U.K.-based developer of medicines for immunology, metabolic, and bone diseases, raised $26 million in funding from NVentures, DCVC, and MagneticVentures.

– Aradigm, a New York City-based benefits platform for cell and gene therapies, raised $20 million in Series A funding. FristCresseyVentures led the round and was joined by AndreessenHorowitz and MorganHealth. 

– PrimeSecurity, a Tel Aviv, Israel and New York City-based AI-powered platform designed to detect and mitigate risks during software design, raised $20 million in Series A funding. ScaleVenturePartners led the round and was joined by FoundationCapital, FlybridgeVentures, and others.

– Algori, a Madrid, Spain-based AI-powered shopper insights platform for the fast-moving consumer goods industry, raised €3.6 million ($4.2 million) in funding from RedBullVentures, Co-invest Capital, AttaPoll, and others.

– EmpromptuAI, a San Francisco-based platform designed to help transition SaaS products into AI-native systems, raised $2 million in pre-seed funding. PrecursorVentures led the round and was joined by AlumniVentures, FoundersEdge, RogueWomenVC, and others.

Private Equity

– AppDirect, backed by CDPQ, acquired vComSolutions, a San Ramon, Calif.-based IT management platform, at an enterprise valuation of more than $100 million.

– JensenHughes, backed by GryphonInvestors, acquired SafetyManagementServices, a West Jordan, Utah-based fire and life safety company. Financial terms were not disclosed.

– NewStateCapitalPartners acquired a majority stake in Harrell-Fish, a Bloomington, Ind.-based mechanical installation and maintenance services provider. Financial terms were not disclosed.

– PestCoHoldings, a portfolio company of ThompsonStreetCapital, acquired SouthwestExterminating, a Houston, Texas-based pest control provider. Financial terms were not disclosed.

– ProsperityPartners, backed by UnityPartners, acquired a majority stake in Farkouh, Furman & Faccio, a New York City-based provider of tax, attest, accounting and business consulting services. Financial terms were not disclosed.

– SEVA acquired a minority stake in Pronto, a Lehi, Utah-based team communications platform designed for front–line employers and higher education institutions. Financial terms were not disclosed.

Exits

– ArclineInvestmentManagement acquired Altronic, a Girard, Ohio-based supplier of ignition, control, and instrumentation systems for critical infrastructure power systems, from HOERBIGERGroup. Financial terms were not disclosed.

– BerkshirePartners agreed to acquire UnitedFlowTechnologies, an Irving, Texas-based process and equipment solutions company for water and wastewater systems, from H.I.G.Capital. Financial terms were not disclosed.

– BessemerInvestors acquired Xanitos, a Newtown Square, Penn.-based provider of environmental services, patient transport, patient observation, and linen services, from AngelesEquityPartners. Financial terms were not disclosed.

– ShareRockPartners acquired a majority stake in AMAGTechnology, a Hawthorne, Calif.-based physical security solutions provider, from AlliedUniversal.

Coupang chief executive officer Park Dae-jun resigned over his failure to prevent South Korea’s largest-ever data breach, which set off a regulatory and political backlash against the country’s dominant online retailer.

In August, Ghodsi told the Wall Street Journalthat he believed Databricks, which is reportedly in talks toraise funding at a $134 billion valuation, had “a shot to be a trillion-dollar company.” At Fortune’s Brainstorm AI conference in San Francisco on Tuesday, he explained how it would happen, laying out a “trifecta” of growth areas to ignite the company’s next leg of growth.