Even Benchmark admits AI is eroding the venture rule against backing rivals

Benchmark partners said at TechCrunch Disrupt that the AI boom is straining the unwritten VC rule against backing direct competitors. The debate follows Factory firing adviser Chris Degnan over alleged conduct involving rival Cognition, with Vinod Khosla defending Degnan even though Khosla Ventures backs both startups.

• Benchmark says portfolio conflicts are now inevitable as AI companies expand
• Factory fired adviser Chris Degnan over "unethical conduct involving Cognition"
• Vinod Khosla backed Degnan despite Khosla Ventures investing in both firms
• OpenAI and Anthropic already share dozens of the same investors