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Even Benchmark thinks AI is eroding the venture pact against backing rivals

For decades, the unwritten rule of venture capital was that a firm doesn’t back two companies that compete head-on.

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At TechCrunch Disrupt, partners from Benchmark acknowledged that the rapid growth of artificial‑intelligence startups is testing the long‑standing venture‑capital norm against backing direct competitors. They noted the rule is “on the verge of snapping,” as the AI sector’s expansion creates overlapping investment interests. Benchmark cited the example of OpenAI and Anthropic, which now share dozens of the same investors, illustrating how the AI boom is eroding the traditional pact.

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