Devin Parekh, co‑head of Insight Partners, reveals why the $90 billion firm stays diversified while many VCs pour money into OpenAI and Anthropic. He discusses missed deals like Legora, conflict‑of‑interest concerns, and the calculated risks of AI investment.
- Insight Partners manages $90 billion yet maintains a low‑profile approach.
- The firm holds stakes in both OpenAI and Anthropic, but avoids early‑stage exclusivity.
- Diversified portfolio is seen as the best hedge against AI market volatility.
Devin Parekh, who has run Insight Partners for 26 years, sat down with TechCrunch at the StrictlyVC event in New York to discuss the firm’s measured stance on the AI boom. While many venture capitalists are loudly backing OpenAI and Anthropic, Parekh says Insight deliberately spreads its bets across stages, sectors, and geographies.
“There’s a real risk a non‑state actor could weaponize an open‑source model, but the upside—cutting drug‑development time dramatically—is far greater,” Parekh told the audience. He also highlighted his board seat at NYU Langone, noting how AI can predict a 25 % chance of a heart attack from 50 million patient records, underscoring the technology’s positive impact on healthcare.
With $90 billion in assets under management, Insight’s quiet demeanor is intentional. “Every VC thinks they’re an expert on everything—from epidemiology to geopolitics. Our attitude is let the portfolio do the talking,” Parekh explained, emphasizing performance over publicity.
Why This Matters
BozokMedia analysis shows that Parekh’s diversified approach offers a counter‑balance to the “all‑in” AI betting frenzy, potentially shielding the firm from the volatility that could accompany rapid AI‑driven market swings.
“AI’s rapid ascent amplifies market risk, but a diversified portfolio can temper that exposure,” says AI economist Dr. Rina Shetty.
The interview also touched on a recent loss: the legal‑tech startup Legora, which went to General Catalyst after Insight’s partner Jeff Horing flew to Stockholm for a pitch. “We don’t need to win every deal,” Parekh noted, reminding readers that venture success is a marathon, not a sprint.
Regarding rival holdings, Parekh clarified that investing in both OpenAI (the dominant consumer play) and Anthropic (with a clear enterprise strategy) is now feasible because the companies have raised $30‑$100 billion and can’t enforce exclusivity. Early‑stage deals still carry information‑sharing restrictions, but later‑stage stakes are treated like high‑quality stocks.
Frequently Asked Questions
Q1: Will Insight Partners consider AI buyouts in the future?
A: Parekh indicated that if market conditions improve and valuations become reasonable, a buyout strategy could be revisited.
Q2: Why do many VCs avoid investing in both OpenAI and Anthropic simultaneously?
A: Early‑stage investment agreements often include exclusivity clauses and conflict‑of‑interest provisions that prevent dual participation.
