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article imageThe major tech giants who are gobbling up AI startups

By Tim Sandle     Sep 24, 2019 in Business
The so-called FAMGA group of companies - Facebook, Amazon, Microsoft, Google, and Apple - are the most aggressive purchasers of AI-innovating startups, according to new research.
The new research comes from CBI Insights, and it examines how the pace of artificial intelligence acquisitions is accelerating as the pool of acquirers expands. This is reflective of the attraction of artificial intelligence to businesses as they seek to gain more advantages from machine learning and big data analytics. The move to acquire is also reflective of the lack of talent within big corporations (the inability to nurture sufficient talent in-house) and the consequential need to go outside to find it.
The current trend is also indicative of the array of innovative companies working with artificial intelligence. However, many of these companies remain at early stages of development, in terms of research and funding, and not all will succeeded making the investment or acquisition process on the part of corporations speculative, with a degree of uncertainty.
The new CBI Insights report "The Race For AI: Here Are The Tech Giants Rushing To Snap Up Artificial Intelligence Startups" looks at some of the acquisition trends happening right now.
The report shows that the majority of acquisitions are being led by Facebook, Amazon, Microsoft, Google, and Apple (the 'FAMGA group'), continuing a process that began around a decade ago. All told, since 2010 there have been 635 AI startup acquisitions made.
Of this group, latest data places Apple at number one, having made twenty AI acquisitions since 2010. Behind Apple is Google (who was the front runner from 2012 to 2016) with 14 acquisitions; and then with Microsoft, who have acquired ten firms.
As an example with Apple,a number of new iPhone features have come from acquired technology rather than from in-house, such as FaceID (for iPhone unlocking), plus the app RealFace. Another example is with Google’s foray into healthcare via DeepMind.
More about startups, Artificial intelligence, digital transformation, FAMGA
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