{
  "id": 2571137,
  "title": "VCs becoming marginal in AI cycle, enterprises should invest in the sector: Peak XV’s Shailendra Singh",
  "url": "https://urgent.news/2026/08/22/vcs-becoming-marginal-in-ai-cycle-enterprises-should-invest-in-the",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-22T11:39:28.000Z",
  "source": {
    "name": "Economic Times Tech",
    "slug": "economic-times-tech",
    "url": "https://economictimes.indiatimes.com/tech/technology/vcs-becoming-marginal-in-ai-cycle-enterprises-should-invest-in-the-sector-peak-xvs-shailendra-singh/articleshow/133423304.cms"
  },
  "original_language": "en",
  "account": "Large enterprises should play a bigger role in funding artificial intelligence companies, according to Shailendra Singh, managing director of Peak XV Partners. Singh made this observation at The Economic Times World Leaders Forum in New Delhi, pointing out that venture capital firms have become \"somewhat marginal\" in the AI investment cycle due to the massive capital requirements. While VCs can still help identify and support startups, the AI cycle is too vast for them to remain the primary source of funding, Singh said. He emphasized that large enterprises possess the capital scale that VCs lack and are therefore better positioned to invest in AI firms. Singh also noted that India is lagging behind in the AI technology frontier, making it crucial for the country to learn from leading global companies. Peak XV, which recently raised a $1.3-billion fund, is focusing heavily on AI applications, enterprise software, and infrastructure. The firm has already backed startups like Sarvam AI and Wispr Flow, among others. Singh highlighted that infrastructure, particularly data centers, could become a major source of value creation in the AI sector, with India's relatively low costs providing a potential advantage. The Indian government is also bolstering the AI sector through initiatives like the Rs 10,372-crore IndiaAI Mission, which supports indigenous foundation models and subsidizes compute.",
  "summary": "“Every large enterprise should be investing in AI,” Singh said at The Economic Times World Leaders Forum in New Delhi. Pointing to HCLTech’s investment in Indian foundational model startup Sarvam AI, and global bets such as Amazon’s backing of Anthropic, he said corporate balance sheets can deploy capital at a scale most venture funds cannot match.",
  "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."
}