AI M&A is just getting started. Here’s what today’s acquirers want from AI startups

AI M&A activity could surge, says RTP Global’s Ewa Kompowska, provided startups follow some simple pointers. (Image: Shutterstock)

While 2025 hasn’t delivered the M&A boom some anticipated, one clear exception stands out: AI. Meta’s recent $14.8 billion deal for a 49% stake in Scale AI has crystallised a trend long in the making – namely, that hyperscalers and enterprise players are now leaning hard into downstream dealmaking. Whether it’s full acquisitions or strategic minority stakes, staying relevant as AI reshapes infrastructure and customer expectations is the name of the game. 

This dynamic is no longer limited to foundational model builders. Across the stack, from agentic automation layers to verticalised tooling, AI startups are seeing inbound interest earlier in their lifecycle. For founders, that means M&A and stake-building are no longer just exit paths. They’re becoming part of the company-building playbook.

“Buy vs Build”: why speed is the new strategic currency 

Traditionally, companies preferred to build critical capabilities in-house, especially when timelines, resourcing and internal talent allowed. But AI moves too fast for that playbook. Products that have taken six months to build in-house risk being outdated by nimble AI startups in half the time. Today, the real risk isn’t buying too early – it’s buying too late or not buying at all.

This marks a fundamental shift from 2022 and 2023, when market caution led to a slowdown in early-stage acquisitions. AI has changed that equation. Now, waiting could mean missing crucial capabilities or proprietary data sets. Companies that articulate clear “impossible-to-build-fast” advantages, whether technical differentiation or embedded customer data loops, are thriving.

The best founders proactively shape their company’s narrative. They clearly align their strategic value with gaps in larger players’ roadmaps. Waiting to define your long-term strategy is outdated; you need to position yourself strategically from the outset. 

Start with relationships, not term sheets 

Strategic dealmaking rarely moves at startup speed. Founders need to prepare for a process that can stretch out and often stall. I’ve seen promising deals stall over avoidable diligence hurdles: unclear IP ownership, missing consent rights in contracts or misaligned cap tables. These are fixable in advance, and they make a meaningful difference to buyer confidence and speed of execution.

But beyond diligence basics, successful M&A is fundamentally about trust. In my experience, the best outcomes come from existing, cultivated relationships, not cold introductions at the term sheet stage. Founders who treat these relationships as long-term investments, engaging regularly with corporate development teams and decision-makers who have been tracking the startup’s evolution and internalising its relevance, are consistently better positioned when deal conversations begin.

How startups can become irresistible acquisition targets 

So what do acquirers want? And how can AI startups position themselves in the best way? I’ve noticed companies that deliver convincingly on three main fronts consistently attract inbound strategic interest earlier than anticipated. The first of these is a startup’s ability to demonstrate enterprise-grade ROI, especially those that can enable time or cost savings at scale on high-friction processes. They also, ideally, should be able to deliver products that require minimal changes to existing workflows and infrastructure, using seamless API layers and affording users easy compatibility with their cloud data warehouses or BI tools. Additionally, the AI products that they’re offering should be secure and explainable from the start. Enterprises, after all, are no longer just impressed by LLM wrappers – in the end, they need infrastructure that respects their data, auditability and reputational risk. 

AI startups should no longer view M&A and strategic stake-building simply as exit options. They’re becoming integral parts of how successful companies grow. The founders who proactively integrate this understanding into their roadmap will find themselves best positioned to navigate – and leverage – AI’s accelerating deal landscape. Ultimately, this isn’t about reacting to a shifting market; it’s about being ready for opportunities long before they become obvious.

Ewa Kompowska is an investor at RTP Global

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