The M&A(I) industry has already seen 55 exits for AI startups in the first quarter of this year, according to Crunchbase data. Non-tech companies are also looking at "acquihires" as a way to jumpstart their AI strategies. However, Julia Gudish Krieger, a managing partner at Pari Passu Venture Partners, warns that "acquihires" often fail because the motivation for the deal is more about getting a soft landing than having a passion for the product they'll be promoting or building in their new roles.
Key takeaways:
- The future of the AI industry could be a wave of "acquihires," where companies acquire other companies to gain their AI specialists.
- Acquihires come with plenty of risks, including overvalued market, high interest rates, and the risk of the acquired personnel not being a good fit.
- AI specialists are highly sought after, with seven-figure pay packages and fierce competition for their skills.
- Non-tech companies also see acquihires as a chance to jumpstart an AI strategy that would be difficult to stand up otherwise.