Dominant players extend power and influence over the explosion of game-changing technologies. Who will keep them in check?

Does anybody remember Napster? Launched in June 1999, the revolutionary peer-to-peer music sharing platform peaked at 80 million music lovers worldwide. It famously fell from greatness into bankruptcy three years later after being found liable for mass copyright infringement. In March of this year, after several years of languishing in obscurity and thanks to the tech world’s sweeping embrace of artificial intelligence, Napster has been given corporate defibrillation.

Immersive 3D tech company, Infinite Reality, flush from a $3 billion funding round, bought Napster for $207 million, then quickly paid $500 million for Touchcast to bolster its Generative AI and immersive technologies capabilities. This is just one in a long string of AI-related deals in recent years with billions of dollars of venture capital flowing in the background.

When it comes to absorbing nascent AI companies, Alphabet (Google), Amazon, Apple, Meta (Facebook), and Microsoft (“Big Four”) lead the way, along with Cisco, IBM, and Intel which also have concluded multi-billion-dollar deals. Adobe, NVIDIA, OpenAI, Oracle, Qualcomm, Salesforce, and UBER are in the billion-dollar club, as well.

The aggressive competitive tactics of some of these companies have drawn unwanted but often deserved heat. They have sparked criticism from consumer groups and legislators; investigations and fines by global competition authorities; litigation from agencies, companies, and consumers; and government-mandated breakups and divestitures. In some cases, their acquisitions have run into government roadblocks, particularly in the U.S., EU, and UK. Pair this history with the tectonic effects of AI – and the promise it shows to change how the world gathers, processes, analyzes, and creates data – and you have an area that screams for the scrutiny of antitrust enforcers and litigators.

The M&A Landscape

The Center for Security and Emerging Technology (CSET) analyzed 4,354 transactions compiled by corporate financial publisher PitchBook. CSET concluded that transactions involving AI companies more than doubled during the last decade, from 225 in 2014 to 494 in 2023. CSET reported 828 transactions in 2021. “The proportion of total M&A transactions in which non-AI companies acquired AI companies grew from 10 percent in 2014 to 45 percent in 2023,” CSET found, although most of these acquisitions were conducted by companies in the technology industry. While the incumbent tech companies are the big buyers, A.I. M&A activity remains “fairly diffuse, with 1,446 unique acquirers engaging in AI M&A transactions over the past decade.”

“In U.S. cross-border AI acquisitions,” CSET continued, “American firms have purchased 503 foreign AI companies, while foreign firms have bought 271 American AI companies. U.S. firms most frequently acquired AI firms based in the United Kingdom and Canada. Firms in the United Kingdom and Canada were also the most frequent foreign acquirers of U.S. AI companies.”

Private equity is fueling much of the development of AI, infusing more than $1 trillion into the technology, supporting data centers, and other pieces of the information technology infrastructure in 2020, according to a March 2025 article posted by the American Investment Council (AIC). “From strengthening cybersecurity to powering semiconductor and datacenter development, private equity firms are supplying the capital and expertise that companies need to remain as the leader of innovation in this global digital transformation race,” the AIC said.

It was private equity that enabled Infinite Reality to purchase Napster and then Touchcast, which partners with Microsoft. Touchcast and Microsoft have their sights on building an “AI Superhighway.” Infinite Reality explains that Touchcast is “built on OpenAI and delivered on Microsoft Azure via a $50 million strategic partnership that provides a suite of AI delivery systems to improve response times.” The delivery of AI services via cloud services is a reason for a healthy pace of collaboration and aggressive acquisition strategies in the overlapping AI/Cloud space.

Meanwhile, the California Law Review Commission has been studying and recommending changes to California antitrust law, as one of its working groups focuses on AI and clouds, and the dominant players in that arena. “The U.S. cloud market is dominated by three major players,” the group writes, “Amazon Web Services (31% market share), Microsoft Azure (25%), and Google Cloud (11%), collectively holding 67% of the market. Smaller firms like IBM, Oracle, Salesforce, and Alibaba Cloud make up the rest, with the market’s concentration level just below the threshold for being highly concentrated.”

“Between 2005 and 2023, major cloud providers and AI-specialized firms like Qualcomm, Meta, Intel, NVidia, and Genesys made nearly 280 AI-related acquisitions,” according to the AI working group. “Activity increased around 2011 and peaked in 2018-2019, marking a distinct cycle of AI expansion that followed the peak acquisition activity of first-generation digital ecosystems in 2014-2015.”

Below we pick up from that “peak acquisition activity” with many noteworthy acquisitions dating back to 2014.

Alphabet Inc. (Google)

1. Alooma: AI-driven data migration technology company, for $200M (2019).^[1]
2. Alter: AI-driven avatar generation company, for $100M (2022).^[2]
3. Api.ai: AI-driven conversational AI technology company (2016).^[3]
4. AppSheet: AI-driven no-code application development platform (2020).^[4]
5. Dark Blue Labs and Vision Factory: AI-driven deep learning for understanding natural language, for $10M (2014).^[5]
6. DeepMind: AI research lab known for its advancements in deep learning, for $400M (2014).^[6]
7. Elastifile: AI-driven cloud storage technology company, for an undisclosed amount (2019).^[7]
8. Fitbit: AI-driven health and fitness technology company, for $2.1B (2021).^[8]
9. Halli Labs: AI-driven machine learning technology company (2017).^[9]
10. Jetpac: AI-driven image recognition technology company (2014).^[10]
11. Kaggle: Platform for data science competitions and AI research (2017).^[5]
12. Looker: AI-driven data analytics platform, for $2.6B (2019).^[5]
13. Moodstocks: AI-driven image recognition technology company (2016).^[5]
14. Pointy: AI-driven retail technology company, for $160M (2020).^[5]
15. Timeful: AI-driven scheduling technology company (2015).^[5]
16. Velostrata: AI-driven cloud migration technology company (2018).^[5]
17. Wiz: Cloud security startup, for $300M (2024).^[5]

Amazon

1. 2lemetry: AI-driven IoT technology company (2015).^[1]
2. Annapurna Labs: AI-driven semiconductor technology company, for $350M (2015).^[2]
3. CloudEndure: AI-driven disaster recovery and migration company, for $200M (2019).^[3]
4. E8 Storage: AI-driven data storage technology company (2018).^[4]
5. Emvantage: AI-driven payment technology company (2016).^[5]
6. Harvest.ai: AI-driven cybersecurity technology company, for $20M (2017).^[6]
7. INLT: AI-driven customs brokerage technology company (2019).^[7]
8. Kiva Systems: AI-driven robotics technology company, for $775M (2012).^[8]
9. NICE: AI-driven cloud optimization technology company (2016).^[9]
10. Orbeus: AI-driven image recognition technology company (2015).^[10]
11. Ring: AI-driven home security company, for $1B (2018).^[11]
12. Sqrrl: AI-driven cybersecurity technology company (2018).^[11]
13. TSO Logic: AI-driven cloud optimization technology company (2019).^[11]
14. Zoox: AI-driven autonomous vehicle company, for $1.2B (2020).^[11]

Apple

1. Drive.ai: AI-driven autonomous vehicle technology company, for $77M (2019).^[1]
2. Emotient: AI-driven emotion recognition technology company (2016).^[2]
3. Laserlike: AI-driven search technology company (2018).^[3]
4. Lattice Data: AI-driven dark data technology company, for $200M (2017).^[4]
5. Mapsense: AI-driven mapping technology company, for $25M (2015).^[5]
6. Metaio: AI-driven augmented reality technology company (2015).^[6]
7. Perceptio: AI-driven image recognition technology company (2015).^[7]
8. Regaind: AI-driven image analysis technology company (2017).^[8]
9. Silk Labs: AI startup focused on privacy-centric machine learning (2018).^[9]
10. Spectral Edge: AI-driven image processing technology company (2019).^[10]
11. Tuplejump: AI-driven machine learning technology company (2016).^[11]
12. Turi: AI-driven machine learning technology company, for $200M (2016).^[11]
13. Voysis: AI-driven voice recognition technology company (2020).^[11]
14. Xnor.ai: Specializing in edge-based AI, for $200M (2020).^[11]

Cisco

1. SnapAttack: AI-driven threat detection and engineering platform (2025).^[1]
2. Deeper Insights AI Ltd.: AI services company based in Bristol, England (2024).^[2]
3. Robust Intelligence: AI-driven AI security solutions company, for approximately $400M (2024).^[3]
4. DeepFactor, Inc.: Cloud-native application security company based in San Jose, Calif. (2024).^[2]
5. Isovalent, Inc.: Cloud-native solutions company leveraging eBPF technology (2023).^[4]
6. Splunk: Leader in cybersecurity and observability, for roughly $28B (2023).^[5]
7. Working Group Two: Company specializing in delivering mobile network software solutions, for $150M (2023).^[6]
8. Armorblox: AI/ML-based security software company (2023).^[7]

IBM

1. Red Hat: AI-driven open-source software company, for $34B (2019).^{[1] [2] [3]}
2. Turbonomic: AI-powered application resource management company, for $1.5B (2021).^{[4] [5] [6]}
3. Hakkoda: Data and AI consultancy based in New York. The financial terms of the transaction were not disclosed. ^{[7] [8] [9]}
4. DataStax: AI and data solution provider. The financial terms of the transaction were not disclosed. ^{[10] [11] [12]}
5. HashiCorp: Infrastructure and security automation firm, for $6.4B (2024).^{[13] [14] [15]}

Intel

1. Habana Labs: An Israeli startup that develops programmable deep learning accelerators for data centers, for $2B (2019).^[1]
2. Nervana Systems Inc.: Known for its AI technology, for $408M (2016).^[2]
3. Movidius: Irish startup that makes vision chips for drones and virtual reality, for $392M (2016).^[3]
4. Mobileye: Fast-growing maker of autonomous car technologies, for $15.3B (2017).^[4]
5. Altera: Known for its programmable logic devices, for $16.7B (2015).^[5]
6. Barefoot Networks: Specializes in programmable network switches (2019).^[6]
7. Moovit: A mobility-as-a-service (MaaS) solutions company, for $900M (2020).^[7]
8. SigOpt: Specializes in optimizing AI models (2020).^[8]
9. Granulate: A real-time continuous optimization company, for $650M (2022).^[9]

Meta (Facebook)

1. Nascent Objects: AI-driven modular electronics technology company (2016).^[1]
2. Ozlo: AI-driven conversational AI technology company, for $60M (2017).^[2]
3. Pebbles Interfaces: AI-driven computer vision technology company, for $60M (2015).^[3]
4. Redkix: AI-driven email collaboration technology company, for an estimated $100M (2018).^[4]
5. Scape Technologies: AI-driven computer vision company, for $40M (2020).^[5]
6. Servicefriend: AI-driven customer service technology company (2019).^[6]
7. Surreal Vision: AI-driven computer vision technology company (2015).^[7]
8. The Eye Tribe: AI-driven eye tracking technology company, for $15M (2016).^[8]
9. Wit.ai: AI-driven conversational AI technology company (2015).^[9]
10. Zurich Eye: AI-driven computer vision technology company (2016).^[10]

Microsoft

1. Affirmed Networks: AI-driven cloud-native networking solutions provider, for $1.35B (2020).^[1]
2. Aorato: AI-driven cybersecurity technology company, for $200M (2014).^[2]
3. BlueTalon: AI-driven data security company (2019).^[3]
4. Bonsai: AI startup specializing in machine learning (2018).^[4]
5. Citus Data: AI-driven database technology company, for $40M (2019).^[5]
6. CyberX: AI-driven cybersecurity company, for $165M (2020).^[6]
7. Equivio: AI-driven text analysis technology company, for $200M (2015).^[7]
8. The Eye Tribe: AI-driven eye tracking technology company (2016).^[8]
9. Genee: AI-driven scheduling technology company (2016).^[9]
10. Maluuba: AI-driven natural language processing technology company (2017).^[10]
11. Metaswitch Networks: AI-driven cloud communications company (2020).^[11]
12. Mover: AI-driven cloud migration technology company (2019).^[11]
13. Nuance Communications: Leader in AI and speech recognition technology, acquired for $19.7B (2021).^[11]
14. Revolution Analytics: AI-driven data analytics technology company (2015).^[11]
15. Semantic Machines: AI-driven conversational AI technology company (2018).^[11]
16. Simplygon: AI-driven 3D optimization technology company (2017).^[11]
17. Wand Labs: AI-driven conversational AI technology company (2016).^[11]
18. Wit.ai: AI-driven conversational AI technology company (2015).^[11]
19. Zurich Eye: AI-driven computer vision technology company (2016).^[11]

More Big Swings

Other major players are investing heavily in AI to enhance their offerings.

ADOBE: Magento, Commerce platform, for $1.68B (2018)^[1]; Workfront, Work management software, for $1.5B (2020).^[2]

INFINITE REALITY (new owner of Napster): Touchcast, AI-driven immersive technology company, for $500M (2024).^[3]

NVIDIA: Arm Holdings, Semiconductor and software design company, for $40B (2020)^[4]; Mellanox, Network technology company, for $6.9B (2019).^[5]

OPENAI: Global Illumination, Uses AI to build creative tools, infrastructure, and digital experiences, for an undisclosed amount (2023)^[6]; Rockset, Analytics database provider (2024)^[7]; Multi, Video collaboration platform, for $1.2B (2024).^[8]; Windsurf (fka Codeium), AI coding startup, for projected $3B (in talks)^[9]; Anysphere, Creator of Cursor, another popular AI-driven coding tool (investment).^[10]

ORACLE: Cerner, Health information technology company, for $28.3B (2021).^[11]

QUALCOMM: NUVIA, CPU design company, for $1.4B (2021).^[12]

SALESFORCE: Slack Technologies, Business communication platform, for $27.7B (2021).^[13]; Tableau, Data visualization software company, for $15.7B (2019).^[14]

UBER: Postmates, Food delivery service, for $2.65B (2020).^[15]

XAI: Twitter/X, Social media platform, for $33B (2024).^[16]

Commentary

These acquisitions highlight the significant and routine nature of investments made by major tech companies, large service providers, and private equity to acquire AI technology, integrate it into existing services, and launch new ventures. In fact, it appears to be the leading strategy for building corporate leadership in this arena. Diana L. Moss and David Hummel of the Progressive Policy Institute wrote in 2022 that digital ecosystems grow mostly through acquisitions (Anticipating the Next Generation of Powerful Digital Players: Implications for Competition Policy, Am. Antitrust Inst., Jan. 18, 2022). (Moss is also participating in the California Law Review Commission antitrust project.)

Acquisition of AI tech gives existing corporate giants even more power in their respective markets and even greater control over much of the world’s data, potentially at the expense of consumers, innovation, and fair market competition. Rapid acquisition also means that while innovation abounds, it offers a quicker and more available path for large corporate players. That means smaller firms are doing a lot of innovation’s heavy lifting or, unable to compete or get acquired, they get shut out.

Not only should antitrust watchdogs monitor this industry closely, but so should national security agencies. The AI goldrush is likely to further consolidate the collection, creation, and control of data among these already data-rich goliaths.

Also demanding attention is the influence of wealthy corporate players – and one in particular – on the U.S. government. Controversial presidential advisor Elon Musk bought Twitter/X in 2022. Two years later his AI startup, xAI, acquired X in a $33 billion all-stock deal. Reuters reported that the X acquisition could help xAI’s ability to train Grok, its generative A.I. chatbot. Based on his large language model, Musk launched Grok in 2023, supposedly with the added feature of “a sense of humor.” Musk controls the X megaphone, xAI (valued at as much as $88B), and the SpaceX Starlink satellite internet constellation. Pair these assets with his role in the Trump administration and allegations of his access to data collected by the government on our citizens, and Musk occupies a seat of unprecedented power and influence in the world in general and in the development and deployment of artificial intelligence in particular.

If, for the sake of this review, we consider 2014 the start of a second wave of acquisitions in the digital ecosystem, there were two noteworthy and controversial deals in that timeframe that are literally on trial today: Meta/Facebook’s purchases of Instagram in 2012 for $1 billion and WhatsApp for $19 billion in 2014. On trial in federal court in Washington, DC, are the FTC’s allegations that these acquisitions were part of a strategy to eliminate competition and maintain a monopoly in the personal social networking market. Meta has maintained a 65% or higher market share in the U.S. personal social networking market since 2011, the FTC alleges. The FTC must not only prove that Meta monopolizes the personal social networking market, but that its position harms competition. Meta counters that the existence of platforms like TikTok, YouTube, and Apple’s iMessage prove that Meta does not control the entire social media market.

Policymakers, regulators, enforcers, and antitrust attorneys have much to tackle due to this whirlwind of technology advancement and business dealing. Just as the FTC has done in the Facebook case, examining the effects of the clusters of acquisitions outlined in this article is one place to start, but not an easy one.