Business

Top AI investors say maybe it’s a bubble, but ‘bubbles are good for innovation’

Published

4 hours ago

December 21, 2025

In the venture capital world, the word “bubble” usually serves as a warning shot—a signal to pull back before a market correction wipes out portfolios. But at the recent Fortune Brainstorm AI conference, two top investors argued that when it comes to artificial intelligence, a bubble might be exactly what the industry needs.

During a panel moderated by Fortune’s Allie Garfinkle, Kindred Ventures founder Steve Jang and Sapphire Ventures partner Cathy Gao tackled the question dominating Silicon Valley: Are we in an AI bubble? The answer was, in short, maybe, but that’s the wrong question to ask.

“I think it is a bubble, but bubbles are good for innovation,” said Jang. He argued that the term “bubble” is often just finance shorthand for a “new technology wave” that occurs every five, six, seven years. According to Jang, this market heat is functionally necessary: “You need a bubble in technology and startups … to not only attract the world’s best talent to work on a certain set of problems but you also need the capital to fund them.”

Jang pointed to the exodus of top engineers from stable roles at tech giants like Google, Meta, and Uber to launch startups as a “good signal” rather than a warning sign. While admitting that “bubbles popping are bad,” Jang suggested that as long as the media continues to question the market, it helps “release pressure” and keeps the ecosystem healthy.

Gao agreed that in certain pockets, “valuations have far outstripped any sort of fundamental” metrics. However, she cautioned against dismissing the trend entirely, noting that the current growth curves “far outstrip the growth curves of companies we’ve ever seen before,” making the total addressable market difficult to calculate. “I don’t think we have a good sense of how big some of these companies can ultimately become.”

The Investment Playbook: Infrastructure vs. Workflow

Beyond the macroeconomic debate, the panelists outlined divergent strategies for surviving the pop, whenever it comes. Jang emphasized that in a true technology wave, “the whole stack changes,” creating opportunities from the bottom up. He noted that Kindred Ventures is focusing heavily on “accelerating and modernizing the AI infrastructure,” including chips, GPU marketplaces, and specialized frontier models. He observed that despite new entrants, margins remain high for cloud and chip providers, giving them “pricing power on all of the application layer companies.”

Gao, who focuses primarily on the application layer, offered a stricter framework for survival. “Let’s get real: AI is no longer a differentiator,” Gao said. She warned that “AI for X” companies are vulnerable. Instead, she said she looks for companies transitioning from simple features to complex workflows that embed deeply into an enterprise.

“In the future, it’s just going to be a customer support workflow tool, and every company will be powered by AI,” Gao said. She argued that despite the volatility, “first-mover advantage is actually real” in the enterprise sector, citing the enduring dominance of Salesforce and Workday that dates back to the cloud era.

Heartbreak Ahead for Robotics

The conversation turned darker regarding the future of robotics. Jang offered a “spicy” prediction for the sector, warning that many current startups are building on “primitive models” roughly equivalent to the “GPT 3.5 phase” of robotics.

“A whole bunch of robotics startups … are going to have a lot of heartbreak when the models improve and they’ve built for something sort of in the past,” Jang predicted. He added that many consumer robotics companies will likely “fall by the wayside” or shut down because the societal and governmental adoption cycles will be too long for startups to survive.

“We’re all going to be using robots on a daily basis,” Jang said. “Our kids are going to be riding in robots in a daily basis. That area is super exciting. But think about all of the startups building humanoids.” They will have to prove that their humanoids won’t, say, fall down or screw up or be buggy. “It’s going to move around in your office or household or on the street even,” he stressed, noting that every part of the physical world is going to have to prepare for humanoid robots potentially malfunctioning. “Think about that. And that is a deep tech problem.”

Looking toward 2026, Gao offered her own counter-intuitive forecast: despite better models, selling into the enterprise is “going to be even more difficult.” She cited unresolved issues regarding trust and visibility as hurdles that the industry has yet to clear. “People are going to be more focused on trust and visibility, and we haven’t really solved that problem yet.”

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‘Bring it on’ — Top Justice Department official responds to impeachment threat over redacted partial Epstein files

Published

30 minutes ago

December 21, 2025

Jace Porter

Deputy Attorney General Todd Blanche was defiant in the face of potential legal consequences over not fully releasing the Justice Department’s files related to the late sex trafficker Jeffrey Epstein.

In an interview Sunday with NBC’s Meet the Press with Kristen Welker, he was asked about comments from members of Congress exploring possible impeachment or contempt charges and whether he takes the threats seriously.

“Not even a little bit. Bring it on,” Blanche replied. “We are doing everything we’re supposed to be doing to comply with this statute.”

The Epstein Files Transparency Act required the Trump administration to release all the Epstein files by Friday with some exceptions to protect victims’ information.

But the documents that have come out only represent a small fraction of the total, and many of them are heavily redacted.

That caused Rep. Ro Khanna, one of the leaders behind the overwhelmingly bipartisan Epstein Files Transparency Act, to warn that the Justice Department wasn’t complying with the law.

Rep. Thomas Massie, who also led the push to release the Epstein files, said in a social media post that a future DOJ could convict Attorney General Pam Bondi and others, adding “THEY ARE FLAUNTING LAW.”

On Friday, Khanna said he and Massie have already started working on drafting articles of impeachment and inherent contempt against Bondi, though they haven’t decided yet whether to move forward.

“Impeachment is a political decision and is there the support in the House of Representatives? I mean Massie and I aren’t going to just do something for the show of it,” Khanna told CNN.

On Sunday, Blanche said that members of Congress criticizing DOJ’s efforts “have no idea what they’re talking about,” explaining that there are about a million pages of documents, and “virtually all of them contain victim information” that must be protected.

He also argued that releasing the Epstein files on a rolling basis over a matter of weeks instead of all at once on the Friday deadline was still in compliance with the law Congress passed.

“There is well settled law, as they should know, that in a case like this where we’re required to produce within a certain amount of time, but also comply with other laws like redacting information, that very much trumps … some deadline in the statute,” Blanche said.

This story was originally featured on Fortune.com

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Will.i.am says work-life balance is for people ‘working on someone else’s dream’

Published

1 hour ago

December 21, 2025

Jace Porter

Will.i.am is busy. When he’s not writing hit songs like “OMG” for Usher, he’s looking for the next big pop star on The Voice UK, or running his new AI company, FYI. So how exactly does he balance it all?

The Grammy Award–winning artist turned tech entrepreneur revealed to Fortune that he maxes out the 5-to-9 after the daily grind of his 9-to-5, and he advises Gen Zers to forget about work-life balance if they want to emulate his success.

“If you’re trying to build something that doesn’t exist, it’s about dream-reality balance,” he says. “Work-life balance means that you’re working for somebody else’s dream. You just have a job supporting somebody else’s dream, and you want to balance your work and your life.

“But if it’s dream-reality balance, then it’s not work. It’s a dream that you’re trying to put into reality, and you’re ignoring your current reality.”

For example, after working on his tech venture from 9 a.m. to 5 p.m., Will.i.am says that he goes back to work on his creative business until 9 p.m. But before his AI company was a reality, his day was flipped. He’d work on music first before dipping into his tech side hustle well into the evening.

It’s why he advises young people to reframe how they think of their time off work and their current 9-to-5 reality.

“I’m not really paying attention to this reality,” he explains. “I’m trying to bring that one [a new business venture or idea] here and focusing on how do I get people who believe in this dream to help me materialize it? So for that, you have to make some type of sacrifice to bring this thing that doesn’t exist here.

“From that perspective, work-life balance is not for the architects that are pulling visions into reality. Those words don’t compute to the mindset of the materializers.”

Will.i.am doesn’t even take time out for his birthday—and goes to work in China on Boxing Day

Of course, many young people already put in hours to their side hustles and personal development after work. Millions of Gen Zers and millennials are tuning into people’s 5-to-9 evening routines on TikTok.

But Will.i.am says chipping away at your dream when most people are off work extends to weekends, birthdays, and holidays.

“I didn’t party. I was always a square, meaning, ‘You work too much, man, let’s go out.’ Like what? Go out. I don’t want to go out. I just always worked,” the rapper says. “It’s your birthday what are you gonna do? Work. You ain’t gonna celebrate?”

The multimillionaire says he’s always saved the celebrating for the stage, where he can finally enjoy the fruits of his labor.

“There’s nothing that’s ever gonna feel that glorious than when you’re actually at a festival. But how do you get to headline a festival? You’ve got to work. My friends would go out and party, hanging out with chicks, doing drugs, drinking. I was just in the studio working, writing songs.”

To this day, he says that he hasn’t gone out and celebrated a birthday—including his most recent one, which was just last week on March 15.

“Like on Christmas for the past 12 years: I could celebrate Christmas with my family, and then on the 26th, I fly to China because that’s dream maker heaven. Anything you want to make is there.”

Will.i.am was speaking to Fortune in Rome for the rollout of Raidio.FYI radios in Mercedes-Benz cars.

Will.i.am’s daily work routine

7 a.m.: Will.i.am is not a part of the CEO-approved 5 a.m. club. Instead, he told Fortune he wakes up at around 7 a.m., and he sticks to this routine whether he’s living in L.A. or London.

8 a.m.: “I walk, do my calls, and get to work,” he says, with the aim to start work at 9 a.m.

9 a.m. to 5 p.m.: “I get a lot done from nine to 12, do my little lunch, then back to work at one, finish at five, and that’s all my tech, like entrepreneurial activities.”

5 p.m. to 9 p.m.: “The night hours are creativity,” he says, adding that specifically between 7 p.m. and 9 p.m. is when he gets the best ideas. “That’s the juicy bits, [when] I’m freaking soaking in emotion, to where I just rinse it out in the phone.”

9 p.m. onward: When Will.i.am was in his late twenties, he says going to sleep at 4 a.m. (and waking up at noon) was the norm. But now, at 50 and balancing both his tech and music ventures, he starts unwinding for bed after 9 p.m. and is asleep by 11 p.m.

A version of this story originally published on Fortune.com on March 23, 2025.

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‘Mother Nature has been dealing a really hard deck’: Western ski resorts struggle with a warm, snowless start to winter

Published

2 hours ago

December 21, 2025

Jace Porter

Ski resorts are struggling to open runs, walk-through ice palaces can’t be built, and the owner of a horse stable hopes that her customers will be satisfied with riding wagons instead of sleighs under majestic Rocky Mountain peaks. It’s just been too warm in the West with not enough snow.

Meanwhile, the Midwest and Northeast have been blanketed by record snow this December, a payday for skiers who usually covet conditions out West.

In the Western mountains where snow is crucial for ski tourism — not to mention water for millions of acres (hectares) of crops and the daily needs of tens of millions of people — much less snow than usual has piled up.

“Mother Nature has been dealing a really hard deck,” said Kevin Cooper, president of the Kirkwood Ski Education Foundation, a ski racing organization at Lake Tahoe on the California-Nevada line.

Only a small percentage of lifts were open and snow depths were well below average at Lake Tahoe resorts, just one example of warm weather causing well-below-average snowpack in almost all of the West.

In Utah, warmth has indefinitely postponed this winter’s Midway Ice Castles, an attraction 45 minutes east of Salt Lake City that requires cold temperatures to freeze water into building-size, palatial features. Temperatures in the area that will host part of the 2034 Winter Olympics have averaged 7-10 degrees (3-5 degrees Celsius) above normal in recent weeks, according to the National Weather Service.

Near Vail, Colorado, Bearcat Stables owner Nicole Godley hopes wagons will be a good-enough substitute for sleighs for rides through mountain scenery.

“It’s the same experience, the same ride, the same horses,” Godley said. “It’s more about, you know, just these giant horses and the Western rustic feel.”

In the Northwest, torrential rain has washed out roads and bridges and flooded homes. Heavy mountain snow finally arrived late this week in Washington state but flood-damaged roads that might not be fixed for months now block access to some ski resorts.

In Oregon, the Upper Deschutes Basin has had the slowest start to snow accumulation in records dating to 1981. Oregon, Idaho and western Colorado had their warmest Novembers on record, with temperatures ranging from 6-8.5 degrees (2-4 degrees Celsius) warmer than average, according to the National Oceanic and Atmospheric Administration.

Continued warmth could bring yet another year of drought and wildfires to the West. Most of the region except large parts of Colorado and Oregon has seen decent precipitation but as rain instead of snow, pointed out NOAA drought information coordinator Jason Gerlich.

That not only doesn’t help skiers but farmers, ranchers and people from Denver to Los Angeles who rely on snowpack water for their daily existence. Rain runs off all at once at times when it’s not necessarily needed.

“That snowpack is one of our largest reservoirs for water supply across the West,” Gerlich said.

Climate scientists agree that limiting global warming is critical to staving off the snow-to-rain trend.

In the northeastern U.S., meanwhile, below-normal temperatures have meant snow instead of rain. Parts of Vermont have almost triple and Ohio double the snowfall they had this time last year.

Vermont’s Killington Resort and Pico Mountain, had about 100 trails open for “by far the best conditions I have ever seen for this time of year,” said Josh Reed, resort spokesman who has lived in Killington for a decade.

New Hampshire ski areas opening early include Cannon Mountain, with over 50 inches (127 centimeters) to date. In northern Vermont, Elena Veatch, 31, already has cross-country skied more this fall than she has over the past two years.

“I don’t take a good New England winter for granted with our warming climate,” Veatch said.

Out West, it’s still far too early to rule out hope for snow. A single big storm can “turn things around rather quickly,” pointed out Gerlich, the NOAA coordinator.

Lake Tahoe’s snow forecast over Thanksgiving week didn’t pan out but Cooper with the ski racing group is eyeing possibly several feet (1-2 meters) in the long-term forecast.

“That would be so cool!” Cooper said.

___

Janie Har in San Francisco, Michael Casey in Boston and Gene Johnson in Seattle contributed. Gruver reported from Fort Collins, Colorado.

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The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content.

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