Big Tech’s Secret Weapon: AI Startups for Sale, No Regulators Allowed

When AI startups are selling out to Big Tech under the radar, should we be worried about innovation or the lack of regulation?

In the fast-paced world of artificial intelligence, not every startup is destined to become the next OpenAI. As excitement wanes and costs skyrocket, many AI startups are quietly seeking refuge with tech giants like Google, Amazon, and Microsoft.

These companies have devised a clever workaround: acquiring key employees and technology from struggling startups through licensing deals, sidestepping the regulatory scrutiny that full acquisitions would attract.

Character.AI, Adept AI, and Inflection are among the latest to strike such deals, which allow Big Tech to dominate the AI landscape while bypassing antitrust concerns. But as these pseudo-acquisitions strengthen the tech giants’ grip on the industry, one has to ask: Are we witnessing the end of true AI innovation, replaced by a new form of corporate consolidation?

Read the full article on Wall Street Journal.

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