AI expansion dominates climate week, sparking mixed reactions

This year’s New York Climate Week saw a surge in AI-driven climate tech investments, with many startups leveraging the boom to secure funding. Venture deal value for climate tech hit $14 billion in the first quarter of 2026, according to PitchBook, driven by sectors like grid infrastructure and dispatchable energy. Tim De Chant, a senior climate reporter at TechCrunch, noted that startups in energy sectors overwhelmingly favored faster AI development, seeing it as a pathway to growth. However, some founders expressed concern that the focus on data centers is overshadowing other promising climate tech areas. One founder remarked, 'Corporates are still interested in climate,' but are hesitant to publicize it due to political risks. While the AI-driven climate tech trend has helped many startups secure funding, there are signs of fatigue, with some questioning whether the current momentum will last.