What you need to know:
- GenAI M&A activity continued to pick up in H1’24, featuring notable deals like Snowflake’s acquisition of TruEra and Nvidia’s acquisitions of Run:ai and Deci — putting the spotlight on the companies that may be next.
- High-momentum genAI startups with leading M&A Probability are in markets including machine learning security and agents & copilots.
More companies are looking to gain an AI edge by acquiring a startup — overall AI M&A activity spiked in Q2’24 to 119 deals, surpassing even the heady 2021 levels.
Zeroing in on the fast-growing generative AI space, there has been a notable uptick in M&A deals over the last year. This has been driven by companies eager to quickly add new tech capabilities and bring in hard-to-hire talent (see table below).
To identify the genAI startups that may be scooped up next, we used CB Insights’ proprietary signals including M&A Probability (a company’s chance of an M&A exit in the next 2 years based on 70+ data points, such as company financial metrics and investor track record) and Mosaic Score (measuring a company’s health).
This analysis resulted in a shortlist of 20+ potential M&A targets in generative AI — customers can see the full list and customize the selection criteria using this CB Insights platform search.
