Tech Acquisitions Are Back On (With an Asterisk)
Our look at the AI dealmaking landscape
A flurry of tech acquisitions in the last few weeks has insiders tentatively optimistic that the multi-year M&A doldrums may finally be in the rearview. And behind the scenes, investors say outreach from acquirers is very active, especially in AI.
OpenAI in particular has shown that it’s eager to offer applications on top of its LLMs, and OpenAI’s reported (though not yet announced) deal to buy coding app maker Windsurf for $3 billion still has people talking. It’s easy to see where the acquisitive Sam Altman could go next, with legal tech startups like Harvey and EvenUp being one obvious choice. As generative video and voice gain traction, high-profile startups like Runway or ElevenLabs could be interesting targets — or potentially victims of Altman’s boundless ambitions.
Another buyer to watch is Databricks, whose deal-happy CEO Ali Ghodsi has been in a charmed spot: the company’s $64 billion valuation has made its shares a valuable acquisition currency, but the fact that it’s still private has helped keep it out of regulators’ crosshairs. Last week’s $1 billion deal for database challenger Neon won’t be its last.