Software’s Existential AI Crisis Is Bonanza for Bankers

U.S. tech merger activity is headed for its best year since 2021—driven in part by enterprise software and other older tech companies acquiring artificial intelligence startups to beef up their AI offerings.

So far this year, U.S. software companies have spent nearly $33.8 billion on 150 completed AI acquisitions, surpassing the combined volume of the past three years, according to data provider PitchBook. During the same period, U.S. companies have announced $541 billion worth of tech transactions where the target was a tech company. If it continues at that pace, tech M&A will rise 40% this year to more than $810 billion.