Is Perplexity most at risk if AI bubble pops? Here’s why a Silicon Valley crowd thinks so

Is Perplexity most at risk if AI bubble pops? Here’s why a Silicon Valley crowd thinks so

By The Indian Express
Publication Date: 2025-11-17 06:33:00

When you think about the AI startup that is most likely to go bust if or when the AI bubble bursts, what is the first name that comes to mind? For attendees of a recent Silicon Valley conference, the answer was Perplexity.

The AI search startup led the list of companies most likely to fall amid the AI boom that many investors and stakeholders fear could be turning into a bubble. More surprisingly, OpenAI occupied the second position on that list that was compiled based on an informal survey conducted among attendees of the Cerebral Valley AI Summit in San Francisco, California, United States, last week.

The one-day founder-investor conference saw panels featuring executives from AI heavyweights such as Anthropic and xAI. As part of the survey conducted by organiser and independent journalist Eric Newcomer, more than 300 attendees at the conference were asked: Which billion-dollar AI startup would you bet against?

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This comes at a moment when many observers are scanning the market for signs of an AI bubble and trying to guess which major player might be the first to stumble. Earlier this month, Softbank said it has sold its $5.8 billion stake in Nvidia, considered to be a clear winner of the AI boom, a move which stirred fresh concerns about inflated valuations.
Several critics have pointed out that stock prices of the tech giants have soared too high and too fast in the mania around AI, drawing comparisons to the 2000 dot-com…