Pre-ChatGPT startups face reckoning as 220 US unicorns fall
- Source
- CNBC
- Time
- 10:49 PM
- Weight
- 94/100
The rapid advancement of generative artificial intelligence has triggered a significant reckoning for U.S. startups founded before the launch of ChatGPT. According to data from PitchBook, more than 220 former "unicorns"—private companies once valued at $1 billion or more—have seen their valuations collapse as the venture capital landscape shifts toward AI-native firms.
Many of these older companies are now considered "stranded," as they struggle with outdated technology, bloated staffing models, and valuations that have dropped by an average of 50% to 68% since the 2021 investment peak. Industry experts suggest that the "SaaS" (Software-as-a-Service) model is particularly vulnerable, as autonomous agents begin to automate tasks previously performed by human workers.