'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT

ChatGPT's arrival in 2022 disrupted the venture capital landscape, making hundreds of startups built before this AI boom appear outdated and overvalued. Over 220 companies that had reached "unicorn" status (valued at $1 billion or more) are now worth significantly less, with startups from 2021 down 68% in value on average, because they lack AI-native products and investors have redirected funding toward AI-focused companies instead.