{
  "id": 16040943,
  "title": "Nikhil Kamath warns of tough 2027 for startups, says money in AI far outstrips its revenue",
  "url": "https://urgent.news/2026/10/22/nikhil-kamath-warns-of-tough-2027-for-startups-says-money-in-ai-far",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-22T11:09:53.000Z",
  "source": {
    "name": "Hindustan Times",
    "slug": "hindustan-times",
    "url": "https://www.hindustantimes.com/india-news/raise-capital-now-nikhil-kamath-says-ai-funding-more-than-its-revenue-warns-startups-101792662885970.html"
  },
  "original_language": "en",
  "account": "Nikhil Kamath, co-founder of Zerodha, expressed concern about a challenging 2027 for startups as he warned that the current investment in artificial intelligence (AI) far exceeds the revenue generated by the industry. Speaking at the NDTV World Summit 2026, Kamath highlighted a significant gap between the $1 trillion invested annually in AI and the $100 billion to $200 billion in revenue generated through enterprise adoption. He emphasized that foreign capital, including investments from the Gulf, played a crucial role in funding American AI companies during previous funding cycles, suggesting that finding fresh capital to sustain current investment levels could become increasingly difficult. In addition, rising US Treasury yields could make borrowing more expensive, potentially exacerbating the situation. Kamath advised entrepreneurs to secure funding while investor appetite is still relatively strong, suggesting that raising capital now could be a prudent move. Kamath also touched on the topic of inheritance tax, questioning its fairness and urging governments to address growing wealth inequality by encouraging wage growth alongside asset price inflation. He advocated for India to learn from China's approach of allowing provinces to compete with one another to attract investment and promote development, proposing that Indian states could similarly compete to attract businesses.",
  "summary": "Nikhil Kamath estimated that around $1 trillion was being invested in AI annually, while revenue generated was between $100 billion and $200 billion.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}