Tom Schmidt, a general partner at Dragonfly Capital, said in an interview at the Token2049 event in Singapore that while many talented professionals are entering the artificial intelligence field, the current situation is making VCs hesitant. Schmidt stated that the cryptocurrency and artificial intelligence fields are currently competing for talent. Due to AI being a new technological development, he said that the field is more attractive to professionals at the moment. However, this isn't the case for VCs. Schmidt said that capital is becoming less interested in AI because it seems to have a lot of "hype and overallocation." Additionally, the high valuations of AI companies are a cause for concern for VCs. He added that when comparing the price-to-earnings ratio to the growth rate, you can see that the field is currently at "crazy levels," comparing the current state to 2021 and stating that the risk environment is 5%. (Cointelegraph)