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Why AI Security Investments Aren't Always a Goldmine

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Why AI Security Investments Aren't Always a Goldmine

Artificial intelligence (AI) security startups have attracted substantial early-stage funding, yet profitable exits remain rare nearly four years after ChatGPT's emergence. Deal volume in the AI security space has surged, but many investors have exited positions with minimal returns on their capital.

Why it matters: Security practitioners evaluating AI-driven security tools should scrutinize vendor stability and funding trajectory, as high failure rates among AI security startups may affect product continuity and support.

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