The AI boom is driving a resurgence in ambitious "moonshot" venture capital bets, as early SpaceX backers' returns and falling software valuations push investors toward riskier, capital-intensive deals. Ideas like nuclear fusion and brain-computer interfaces are attracting VC firms that previously avoided such sectors. Excluding AI start-ups, global deep tech investment has exceeded $150bn since 2024, surpassing the $133bn invested in the entire decade to 2019, per Dealroom.

Matt Robinson, partner at Accel, notes the transformation in VC discussions. Max Hodak, co-founder of Science and Neuralink alongside Elon Musk, argues VCs' software focus was a "detour" from hardware roots. This year's deep-tech investments haven't surpassed 2021's peak, driven by battery and EV deals for Rivian and Northvolt, many of which soured. However, AI infrastructure spending is creating markets for revolutionary ideas, from space-based data centres to fusion power.

AI simulations are slashing experimentation costs in fusion and space tech. Carina Namih of Plural says AI transforms "in silico" work, accelerating deep-tech fields. Yet commercialisation timelines remain uncertain. Alphabet's X lab pioneered moonshots over a decade ago, producing hits like Waymo but highlighting the long, uncertain path to returns.