
AI era rewrites startup math, deflating pre-GPT unicorn valuations
Generative AI and the ChatGPT moment have triggered a private-market valuation reset, leaving hundreds of pre-AI unicorns inflated by the 2021–2022 boom with little fresh funding and shrinking exits. Companies that last raised in 2021 or 2022 have seen steep declines, and many aren’t raising new money, pushing investors toward AI-native firms or discounted acquisitions as the likely path to liquidity. Legacy software players face pressure to pivot to AI-first models and new pricing schemes as the landscape shifts away from growth-at-any-cost toward AI-driven efficiency.





