AI startups create unicorn status with dual-valuation equity sales

AI startups are using dual-valuation rounds to achieve unicorn status, with a portion of equity sold at a lower price and another at over $1 billion. This strategy allows companies to claim a $1 billion valuation, attracting talent and deterring competitors, even though the average price paid by investors is lower. The tactic is seen by some as a sign of market competition and potential bubble behavior, carrying risks if future funding rounds fail to meet expectations.