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Why VCs are Moving from AI Models to AI Applications

Investors are looking beyond AI models and putting more money into startups that use AI for filmmaking, sports, content creation, and entertainment.

Written By : Antara
Reviewed By : Ankitha Phulare

Venture capital firms are changing what they look for in the AI space. Instead of investing all their money in AI models and the technology behind them, investors are now showing greater interest in AI startups that solve everyday problems. The three most trending sectors that receive the highest flow of money involve media, sports, and filmmaking. 

In India, firms such as Premji Invest, Peak XV, and IAN Alpha Fund have backed companies using AI to create videos, produce content, and improve sports coverage. For example, last year, Peak XV led Dashverse's USD 13 million Series A investment. Founded by Sanidhya Narain, Lalith Gudipati, and Soumyadeep Mukherjee, Dashverse is an AI-powered entertainment company that creates tools for short dramas and comics. 

Similarly, IAN Alpha Fund led SportVot, an AI-powered sports production, streaming, and analytics venture, in a Rs. 33 crore investment round in April 2026. The idea is simple. AI can help companies save time, cut costs, and create more content. In sports, it can find important moments during a match and turn them into short clips.

Why Investors are Looking Beyond AI Models

This shift shows that investors want AI products with a clear use. Rather than selling AI technology on its own, these startups use it to solve problems faced by media and sports companies.

Celebrities are also joining the trend. Shah Rukh Khan’s family office invested in Mythik. Bhumi Pednekar and Ajay Devgn also entered the AI filmmaking space. Former cricketer Ravi Shastri is backing Smartan FitTech, which uses AI to study athlete movements and help reduce injury risks.

AI could also change how young sports talent is found. SportVot’s system can track players and create clips around their performance. This could help scouts find players from smaller cities who may not get much attention.

The focus on real-world uses could shape the next phase of the AI boom. As these tools become easier to use, more industries may turn to AI for tasks that once needed large teams and long hours.

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