Artificial Intelligence (AI) has emerged as a key strategic focus across industries, regardless of their size or domain. Amid a challenging dealmaking environment marked by uncertainty and volatility, AI has been a rare bright spot, spurring significant M&A activity. According to Dealogic, the number of U.S. M&A transactions is down approximately 18% year-over-year. However, a considerable percentage of the deals that are taking place are fueled by AI. This reflects a critical shift in how companies are leveraging M&A to position themselves at the forefront of the AI revolution.
One prominent example illustrating this trend is Meta’s $14.8 billion investment in Scale AI, which was announced in June 2025. As part of this transaction Meta obtained a 49% stake in Scale AI and positioned Scale AI CEO Alexandr Wang as the head of Meta’s initiative focused on pursuing “superintelligence.” Industry rumors suggest that Meta CEO Mark Zuckerberg pursued this acquisition after facing frustrations with the progress of the company’s internal AI efforts. The investment in Scale AI follows similar attempts by Meta to acquire other leading AI startups like Perplexity AI and Safe Superintelligence. Additionally, recent reports indicate that Apple has considered acquiring or investing in Perplexity AI as part of its broader strategy to advance its AI capabilities.
The Scale AI transaction exemplifies a broader trend in which companies turn to M&A to fast-track their AI ambitions. Building and deploying advanced AI systems requires not only significant time but also highly sought after talent. Establishing these capabilities organically can be a monumental challenge. By acquiring companies with proven expertise in AI, organizations can overcome these hurdles and accelerate the development and deployment of cutting-edge solutions.
AI Talent as a Scarce and Strategic Resource
One of the more pressing reasons for AI-focused acquisitions is the scarcity of talent. Skilled AI professionals represent a critical yet limited resource in today’s market, and accessing this specialized expertise is essential for companies aiming to achieve success in AI initiatives. Through what is often referred to as “acqui-hiring,” companies can acquire not just innovative technologies and Intellectual property but also teams of seasoned experts. These hires can then train and lead existing teams, ensuring a smoother transition and maximizing the value of AI investments.
At the heart of this surge in AI-driven deals is the recognition that AI represents not just an opportunity but an imperative.
A compelling example of this comes from semiconductor giant AMD. Recently, the company announced its acquisition of the team behind Untether AI, a move designed to enhance energy-efficient AI inference chip development. This type of strategic acquisition underscores the value of bringing in deeply knowledgeable teams with the skills needed to stay competitive.
It can be unrealistic within the context of a very rapidly evolving technology for companies to expect existing workforces to inherently possess the skillsets required to harness AI’s full potential. Without the right expertise in place, AI projects may falter, leading to costly missteps. By utilizing M&A as a mechanism to recruit top talent, companies are not only mitigating risks but also significantly improving the likelihood of success.
A High-Stakes AI Race
At the heart of this surge in AI-driven deals is the recognition that AI represents not just an opportunity but an imperative. Companies across industries are in a race to integrate AI into their products, services and operations. Falling behind in certain industries could present existential risks.
Dealogic estimates that 7 of the largest 15 U.S. M&A transactions have been tied to companies positioning themselves for success in AI. Organizations are keenly aware that failing to make bold moves in this space could leave them obsolete. Investing now, through both organic development and strategic acquisitions, is increasingly seen as the only viable path to long-term relevance.
M&A isn’t just about acquiring assets; it’s about securing a spot in the future. For many companies, AI represents that future.
This urgency is evidenced by the dealmaking activity among businesses we work with. Many acknowledge that pursuing an AI M&A strategy is essential to ensure they remain competitive, even amid broader market unpredictability. The adoption of AI technologies through acquisitions allows companies to bring innovative solutions in-house faster, gain a competitive edge, and ultimately safeguard their future.
Looking Ahead
The role of AI in driving M&A activity shows no signs of slowing. Regardless of when broader market predictability returns, AI will remain a defining force in dealmaking for the foreseeable future. Companies that take bold strategic action now, whether through acquiring AI capabilities or heavily investing internally, will position themselves as leaders in an economy increasingly shaped by AI advancements.
M&A isn’t just about acquiring assets; it’s about securing a spot in the future. For many companies, AI represents that future. Those who recognize its potential and act decisively now will position themselves for the future, while the ones who don’t put their future at risk.
By capturing the momentum of AI, today’s M&A activity is not only accelerating innovation but also fundamentally reshaping industries and workforce. Forward-thinking organizations will use AI to cement their market positions and redefine the possibilities of technology in the years to come.
About the Author
Chris Clapp leads CrossCountry’s national Private Equity practice where he is responsible for the overall strategy, practice development, business development, and client delivery to the firm’s private equity accounts. In addition to advising private equity firms, Chris works closely with portfolio companies to help maximize operational performance and assist with strategic transactions, such as IPOs, M&A, carve-outs, and divestitures.
CrossCountry Consulting is a provider of specialized finance, operations, and technology advisory services. As an advisor to Fortune 500 companies, emerging growth market leaders, and private equity sponsors, the firm solves today’s most pressing challenges and creates present and future enterprise value through accounting and risk, technology-enabled transformation, and transaction solutions.
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