Big companies are acquiring AI startups. Acquisitions are used by companies for strategical benefits such as access to a new market, products and services. Acquisitions also help companies to diversify their portfolios and to achieve economies of scale. Companies need to protect their market share and be competitive and with the help of acquisitions they are more likely to do so. AI is the new technology niche, and AI startups are selected and targeted for acquisitions. Since 2012 more than 250 private companies that use AI algorithms have been acquired.
Companies generate a large amount of data, and with the help of new AI technologies they are able to control, analyze and understand all this data and information to make more effective business decisions.