SCB 10X's CIO reveals a significant shift in AI venture funding: VCs are moving away from backing any "smart AI" to demanding sustainable, profitable business models with real unit economics. Key criteria now include durability (resistance to commoditization), proprietary ownership (data, workflows), compounding effects (network benefits), and production readiness (safety, scalability). Being AI-native is no longer a differentiator—it's the baseline. Most critically, investors are focusing on "Control Layer" infrastructure (safety, observability) as AI shifts from content generation to autonomous execution, creating an entirely new investment thesis for founders.