Is Big Tech on the Cusp of an AI Deal-Making Revolution

The deal-making landscape has experienced a rise in acquisitions of AI startups amid a sluggish M&A environment. In the second quarter, 65 AI startups were acquired, marking a 55% increase compared to the same quarter last year and a 15% rise from the first quarter. Over two dozen transactions occurred this quarter, with Google forming a non-exclusive licensing agreement with Character.ai, which included buying out its investors. The year has seen 145 M&A deals involving AI startups, surpassing the total of 189 from the previous year. Notable acquisitions include Nvidia's purchases of Run:AI for $700 million and Deci AI for $300 million, and JFrog's acquisition of Qwak for $230 million. Large tech companies pursue strategic acquisitions to maintain a competitive edge in the AI sector, adapting to economic challenges faced by startups. The trend includes licensing deals that allow companies to obtain technology and talent while avoiding traditional acquisition structures, indicating a potential increase in M&A activities within the evolving AI investment landscape.

Learn more on this news visit us at:

https://theweb3.news/news-bites/is-big-tech-on-the-cusp-of-an-ai-deal-making-revolution/

Hosted on Acast. See acast.com/privacy for more information.