Artificial Intelligence M&A Activity
Artificial Intelligence M&A by Year (In Billions of USD)
Total Deal Size in ($B) # of Deals
Annualized
48.1
From 2020 to 2024, there has been a significant uptick in acquisitions of AI startups by major tech companies, aimed at bolstering their technological capabilities and market positions. In 2021, there was a notable increase in sector-specific AI investments. This is prominent in healthcare, where AI-powered solutions promise significant advancements in diagnostics and patient care. Further, the need for remote collaboration brought by the COVID-19 pandemic accelerated digital adoption and AI deployment across industries in 2021. This all drives heightened interest in AI M&A as companies seek AI technologies for more remote work solutions and operational efficiencies. Cities like San Francisco, Beijing, and Tel Aviv have emerged as prominent global hubs for AI innovation and witnessed a noticeable regional surge in AI sector M&A activity. This trend during these past years has drawn regulatory scrutiny worldwide, with regulators closely monitoring deals to ensure compliance with fair competition and data protection laws. Projections show the AI sector is expected to continue experiencing robust M&A activity, driven by advancements in machine learning, natural language processing, and computer vision technologies.
700
383
38.5
53.3
50.8
16.8
26.3
2020
2021
2022
2023
YTD 2024
M&A Volume by Quarter (In Billions of USD)
Total Deal Size in ($B) # of Deals
276 288
273
229 236
228
202 190 209
190 184
187
170
165
160
160
139
120
8.3 5.2 1.7 22.0 10.7 8.5 15.8 18.3 24.1 6.4 2.3 17.3 1.2 5.8 6.2 3.1 20.3 2.3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 2024
Source: Pitchbook as of June 2024. Data consists of transactions where deal value was disclosed.
Source: PitchBook, Forbes, Harvard Business Review, TechCrunch, McKinsey & Company.
20
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