Gagarin Capital and Davidovs VC founder Nik Davydov draws a parallel between artificial intelligence and the development of electricity 130 years ago. According to him, society’s current attitude toward AI is similar to the debates that took place during the electrification era. Some viewed electricity as the future and invested in it, while others considered it a threat. However, the widespread adoption of electricity took decades, and even in the U.S., steam engines were still in use for 35 years.
Artificial intelligence, on the other hand, is evolving much faster, and humanity does not have the luxury of time to adapt to this transformation.
At the Digital Almaty 2025 forum, Davydov discussed the effectiveness of investing in fundamental models and explained how the DeepSeek project resembles Bollywood movies. He also shared his thoughts on how AI agents are influencing the venture market and when they might fully automate business processes, eliminating the need for human intervention.
The Value of OpenAI and Major AI Companies Is determined by corporations, not the market
Davydov believes that the artificial intelligence ecosystem is structured as an inverted pyramid. At its base lies electricity, followed by chips, and above them, cloud technologies. These sectors play a crucial role in AI development, yet traditional venture investors rarely allocate funds to these areas because the risk-reward ratio differs from conventional investment strategies.
This sector mainly involves large-scale infrastructure projects. For example, in the U.S., the construction of data centers for artificial intelligence could require hundreds of billions of dollars. Even former U.S. President Donald Trump has addressed the significance of such massive investments.
The future of the AI market and venture investments
At the forum, Davydov noted that modern AI agents are already capable of optimizing workflows, yet they still cannot fully replace humans. However, automation levels are expected to increase significantly in the near future, potentially leading to major transformations in business and labor markets.
Conclusion
- The pace of AI development is much faster than the widespread adoption of electricity.
- The most critical resources for AI include electricity, chips, and cloud technologies.
- Investments in AI infrastructure require substantial capital and differ from traditional venture capital strategies.
- AI agents are gradually impacting the labor market, but they have not yet fully replaced humans.
As a result, investors and business leaders must prepare for upcoming technological shifts. In the future, infrastructure, computing power, and the integration of artificial intelligence into business processes will play a decisive role.
