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Know 10 exciting mergers and acquisitions in the AI industry in 2022-23

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Artificial intelligence (AI) technology has been gaining momentum in recent years, with its potential to transform various industries and bring about revolutionary changes. The democratization of AI has enabled businesses of all sizes to leverage its capabilities and stay competitive in the market. As a result, AI companies are continuously exploring new ways to innovate and provide the best AI-powered solutions to their customers. This has led to a series of mergers and acquisitions (M&A) of AI companies, bringing together some of the most innovative and dynamic businesses in the field.

So, are you curious to know about the 10 most recent mergers in the AI industry? Read ahead to find out!

10 recent deals in the AI industry

1. Google and Alter

Google acquired Alter, an artificial intelligence (AI) avatar startup, in 2022. Alter is a company that helps creators and brands express their virtual identity through innovative AI technology.

Alter was originally launched as Facemoji. The platform was designed to provide plug-and-play technology that assisted game and app developers in adding avatar systems to their applications, making it easier for creators to express themselves in virtual environments. Some of Alter’s notable investors include Play Ventures, Roosh Ventures, and Twitter, who collectively invested $3 million in the startup. Following its early success, Facemoji was rebranded and transformed into the cutting-edge AI avatar technology known today as Alter.

Google reportedly spent about $100 million to secure the acquisition, indicating its strong commitment to AI innovation. This move is just one of the many investments that Google has been making in its AI technology, as the company continues to develop cutting-edge language learning models, image generators, and more.

2. Accenture and Flutura

Accenture is expanding its AI capabilities with the acquisition of industrial AI company Flutura, based in Bangalore, India. This strategic move is set to boost Accenture’s industrial AI services and increase the performance of plants, refineries, and supply chains.

By utilizing Flutura’s cutting-edge technology, clients will be able to achieve their net zero goals faster and more efficiently. Accenture aims to bring Flutura’s capabilities to clients across a range of industries, including energy, chemicals, metals, mining, and pharmaceuticals.

This acquisition is just one of many steps that Accenture has taken to build its data and AI capabilities for clients. The company’s recent acquisitions in the AI space include:

  • Analytics8 in Australia
  • Sentelis in France
  • Bridgei2i and Byte Prophecy in India
  • Pragsis Bidoop in Spain
  • Mudano in the UK
  • Clarity Insights, End-to-End Analytics, and Core Compete in the US

3. Nextiva acquires Simplify360

US-based conversation platform Nextiva has acquired Simplify360, a leading AI customer experience platform based in India. According to a statement released by Nextiva, this acquisition will help level the playing field for businesses of all sizes by making it easier to deliver world-class customer support.

Simplify360 uses advanced AI and automation to empower over 5,000 businesses globally to provide seamless customer support across multiple channels, including social media, email, live chat, online reviews, and e-commerce. The company’s clients include big names such as Amazon, Honda, HP, Nestle, HDFC, Hyundai, Canon, and Xiaomi.

4. McKinsey acquires Iguazio

McKinsey has announced its latest acquisition, Iguazio, a renowned leader in the fields of artificial intelligence and machine learning. With Iguazio’s cutting-edge technology, McKinsey’s QuantumBlack will be able to provide clients with industry-specific AI solutions that are more productive, faster, and reliable than ever before.

This move is set to significantly enhance McKinsey’s offerings in the AI industry and provide clients with a holistic solution that unlocks the full potential of AI. Iguazio has already made waves in the market and has earned recognition from some of the biggest names in the industry, making it an excellent addition to McKinsey’s already impressive roster of partners.

5. Amazon and Snackable

Last year, Amazon made an addition to its growing AI arsenal by acquiring Snackable.AI, a small yet promising firm specializing in audio-focused artificial intelligence. The e-commerce giant plans to leverage Snackable’s expertise to enrich user features for its podcast offerings on Amazon Music.

This move is part of Amazon’s and other tech giants’ race to integrate AI-powered features across their businesses, driving innovation and enhancing customer experience. With Snackable’s technology, users can effortlessly navigate lengthy video or audio clips through instant chapter generation, highlights, and more.

6. Snowflake and Myst AI

Snowflake, the cloud-based data warehouse company, has announced its plan to acquire Myst AI, an artificial intelligence-based platform that specializes in time series forecasting. The acquisition is part of Snowflake’s ongoing strategy to integrate machine learning into its data cloud services.

Myst AI’s advanced forecasting technology allows for more efficient energy usage by predicting demand spikes, renewable energy generation, and pricing. This acquisition will further bolster Snowflake’s capabilities in the realm of machine learning, enabling it to provide more advanced solutions to its clients.

7. Deloitte and SFL Scientific

In a move that underscores its commitment to delivering cutting-edge solutions to clients, Deloitte announced the acquisition of SFL Scientific, a leading AI strategy and data science consulting firm. This acquisition further cements Deloitte’s position as an industry leader in AI and demonstrates its continued investment in the capabilities that public and private sector clients need to transform their businesses for future success.

By combining SFL Scientific’s deep science and analytics knowledge with Deloitte’s extensive AI capabilities, industry experience, and market reach, the company is uniquely positioned to drive AI-fueled transformations for clients across a range of industries. The acquisition of SFL Scientific’s business also reinforces Deloitte as a destination for top talent in the AI space and underscores the company’s commitment to fostering an environment that encourages technical excellence and technology development.

With this strategic move, Deloitte is poised to continue growing its leading teams of data scientists, strategists, and technologists, all in support of delivering AI-fueled transformations that help clients achieve their business goals.

8. VideoVerse and Reely.ai

VideoVerse, a popular SaaS platform for video editing, has recently announced its acquisition of Reely.ai, a US-based Esports company that uses AI-powered technology for content creation and distribution. The acquisition is a strategic move by VideoVerse to expand its offerings and provide its gaming industry customers with enhanced solutions.

Reely.ai’s AI technology is designed specifically for gamers and streamers, automating the editing process, streamlining video content creation, and helping in the creation of more engaging content. The platform’s unique features allow it to identify key moments and highlights within a game, making it easier for users to create highlight videos and share them on multiple social media platforms.

By joining forces with Reely.ai, VideoVerse aims to better serve the growing demand for AI-driven content creation and distribution in the gaming and esports sectors.

9. InstaDeep and BioNtech

In a move aimed at accelerating the development of next-generation immunotherapies and vaccines, BioNTech has announced its acquisition of InstaDeep, a prominent technology company in the field of AI and ML.

Through this acquisition, BioNTech plans to integrate validated AI- and ML-based models developed by InstaDeep into its discovery platforms, and to leverage its DeepChain™ platform to create an automated lab infrastructure that can facilitate high-throughput design and testing of drug candidates at scale.

The acquisition will also help BioNTech to develop novel AI and ML technology solutions that can be applied across key strategic and operational functions, as it seeks to build world-leading capabilities in AI-driven drug discovery.

10. Pinterest and The Yes

In 2022, Pinterest announced that it will acquire THE YES, an innovative AI-based shopping platform for fashion that offers a personalized feed to users based on their brand, style, and size preferences. The acquisition is expected to bolster Pinterest’s position as a leading platform for taste-driven shopping by integrating THE YES’s shopping expertise and advanced technology into its offerings.

With a vast leadership and a talented team, THE YES has built a comprehensive algorithm that combines human expertise with machine learning to power its extensive fashion taxonomy. This could potentially be applied to other categories on Pinterest, such as home, beauty, and food.

The trend of mergers and acquisitions in the AI industry shows no signs of slowing down. As companies look to expand their capabilities and improve their competitive edge, acquiring AI-based startups or partnering with established AI companies has become a popular strategy. With the continued growth of AI, we can expect to see more mergers and acquisitions in this space in the years to come.

Read next: Even as AI startups fall by 69%, 750K people are bootstrapping AI products, finds study

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