This trend of 'reverse acquihires' is seen as the new strategy for big tech companies to consolidate the AI industry without facing legal hurdles. The article suggests that this pattern, predicted by Hoffman, is likely to continue as AI startups struggle with the high costs of building leading AI models and big tech companies, flush with cash, look for ways to invest in AI.
Key takeaways:
- Big tech companies like Microsoft and Amazon are hiring teams from AI startups and licensing their technology, a move seen as a way to avoid antitrust scrutiny.
- This pattern, predicted by Reid Hoffman, is expected to become common in future AI deals.
- Amazon recently hired most of the team from AI startup Adept and will be licensing their technology to build digital agents for software workflows.
- The current antitrust enforcement regime makes it difficult for big tech companies to acquire startups outright, leading to this new approach of hiring and licensing.