‘They’ve pickled each others’ brains’

The technology sector experienced a tumultuous year in 2025, marked by the loss of approximately half a million jobs. This shakeup was largely attributed to aggressive investments in artificial intelligence and the rapid rollout of AI-driven products—some of which have even been linked to negative mental health outcomes among users. The fallout has had profound effects on the workforce, investors, and the broader innovation environment.

At the heart of this disruption lies a contentious dynamic within venture capital circles. Industry insiders have described the investment landscape as steeped in cronyism, where venture capitalists maintain tight-knit communications that influence startup valuations, financial terms, and market perceptions. Such an environment arguably hampers objective assessment and favors entrenched interests over genuine innovation.

The Limits of AI: Overinvestment and Sociocultural Consequences

While AI remains a transformative technology with vast potential, the recent wave of development has outpaced societal readiness and oversight. Certain AI products released in 2025 have reportedly contributed to increased anxiety, misinformation proliferation, and even psychosis cases among vulnerable demographics. These unintended consequences have sparked debates about ethical AI deployment and regulatory frameworks.

Concurrently, many tech companies have downsized their human workforce in pursuit of automation efficiencies, leaving large segments of highly skilled workers unemployed. This displacement fuels concerns about economic inequality and calls for rethinking the balance between human labor and machine intelligence.

Cultural Entrapment and the Challenge of Reform

The phrase “They’ve pickled each other’s brains” metaphorically captures the insular nature of investor networks that reinforce groupthink and stifle divergent perspectives. This phenomenon contributes to repeated strategic missteps and resistance to transformative reforms in the way startups are founded, funded, and scaled.

Addressing these systemic issues requires increased transparency, diversification of investor bases, and heightened accountability. Industry leaders are now advocating for more inclusive funding models and ethical considerations to restore trust and foster sustainable innovation. The road ahead demands both cultural and structural change to navigate the AI era responsibly.