Venture capital firms are changing the way they look at the artificial intelligence sector. Instead of putting most of their money into AI models and the technology behind them, investors are now showing more interest in startups that use AI to solve practical business and consumer problems.
Media, sports and filmmaking are among the sectors currently attracting significant investor attention.
In India, firms such as Premji Invest, Peak XV and IAN Alpha Fund have backed startups that use AI for video creation, content production and sports coverage. This indicates a broader change in the investment market, where practical applications are becoming as important as the underlying technology.
Why Investors Are Looking Beyond AI Models
The current investment trend suggests that venture capital firms want to see a clear purpose behind AI technology.
Rather than simply developing an AI model, startups are using these technologies to address specific problems faced by businesses. The approach can help companies save time, reduce costs and produce more content with fewer resources.
A good example is Dashverse. Last year, Peak XV led a USD 13 million Series A funding round for the company.
Dashverse was founded by Sanidhya Narain, Lalith Gudipati and Soumyadeep Mukherjee. The company is an AI-powered entertainment business that develops tools for short dramas and comics.
The sports sector is also seeing similar interest.
In April 2026, IAN Alpha Fund led a Rs. 33 crore funding round in SportVot. The company works in sports production, streaming and analytics using AI-based technology.
One of its applications is identifying important moments during matches and converting them into short video clips. For sports organisations and content teams, this can reduce the time and effort required to create match-related content.
Celebrities Are Also Investing in AI Startups
The interest in AI applications is not limited to traditional venture capital firms.
Several celebrities and well-known personalities have also started backing startups working at the intersection of technology, entertainment and sports.
Shah Rukh Khan’s family office has invested in Mythik. Bhumi Pednekar and Ajay Devgn have also entered the AI filmmaking space.
Former Indian cricketer Ravi Shastri is backing Smartan FitTech. The company uses AI to study athlete movements and aims to help reduce injury risks.
These investments show that AI is finding applications beyond traditional technology companies. Entertainment, filmmaking and sports are increasingly becoming areas where AI can be used to improve existing processes.
AI Could Help Discover New Sports Talent
Another important use of AI could be in identifying young sporting talent.
SportVot’s technology can track players and create clips based on their performances. This could help scouts identify talented players from smaller cities who may not receive enough attention through conventional scouting methods.
For young athletes, better visibility can make a major difference. A strong performance captured and shared through digital platforms could help a player attract attention from scouts, teams and other sports organisations.
What This Means for the Next AI Investment Cycle
The growing focus on practical AI applications could influence the next phase of investment in the sector.
As AI tools become easier to use, more industries may adopt them for tasks that previously required large teams, significant time and higher costs.
This does not mean AI models are becoming unimportant. Instead, investors appear to be paying greater attention to the businesses that can turn AI capabilities into useful products and services.
For startups, simply having an AI component may no longer be enough. The bigger question is whether the technology solves a genuine problem and provides measurable value to customers.
Media companies can use AI to create content faster. Sports businesses can use it for production, streaming and analytics. Filmmakers can explore new ways of developing and producing content. Sports organisations can also use AI-based tools to analyse player performance.
The common factor across these examples is practical use.
As venture capital moves towards application-focused AI startups, the next major opportunities may come from companies that understand a specific industry problem and use AI to solve it effectively.
The growing investments in media, sports, entertainment and filmmaking show that the AI investment story is moving beyond models and infrastructure.
For investors, the question is increasingly becoming simple: What real problem can this AI technology solve, and how much value can it create?
