Amid a downturn in biotech and consumer goods, AI dealmaking is thriving, as revealed by insights from 20 venture capitalists surveyed this week.

AI startups are attracting substantial funding, with notable examples including Krea, which raised $83 million, and Touchcast, which was acquired for $500 million.

Despite a modest overall slowdown in venture capital funding deals, the AI sector continues to maintain steady deal volume, fueled by persistent enthusiasm for AI products.

While many investors express anxiety due to market uncertainty, most still expect to maintain their deal volume for the year.

In a significant move, OpenAI is reportedly in talks to acquire Windsurf for $3 billion, which would be its largest acquisition to date and highlights a trend toward consolidating successful AI applications.

The recent volatility in the stock market is deepening the divide between successful AI startups and struggling sectors like biotech and retail.

Public biotech stocks have dropped 20% this year, leading to significant layoffs at early-stage companies like Port Therapeutics due to funding challenges.

The anticipated end of de minimus rules on cheap goods imports is expected to strain business models for companies like Shein and Temu, resulting in price hikes.

Consumer packaged goods companies are also facing challenges, with startups like Jolie and Havenly raising prices to cope with rising costs.

Additionally, ocean freight traffic from China to the US has decreased by 50%, indicating potential long-term impacts from the ongoing trade war.

Investors are reporting a higher bar for new investments, with founders approaching them with lower valuations than previously expected.

Overall, while certain sectors face significant challenges, the AI market continues to flourish with strong revenue figures and investment opportunities.