Are investors blindly funding any company which has AI or just the term AI in'em

VC mindset-

1. Raise a lot of money from LPs (Rich People or Institutions).

2. Get ~3% out of the fund for operations and then for every successful exit.

3. Fund startups/industries that others are investing into to create a cycle.

Now what happens when all the startups are doing bad? Can't deploy capital? You can't return the cash to LPs saying "OOPs didn't find best startups to fund"

Instead you go, "See everyone is investing in AI, so we are also doing it!", LPs happy to be part of a trend and thinks themselves smart while you raise more for your fund. :)

The key is to raise multiple funds so you get the 3-5% from each one :)

Investors only blindly fund friends and family. Everyone else needs revenue that changes by the VC.

Yep! They are shoving AI into everything.

and also do you feel the ai hype is real?

What is real hype?