Why AI M&A Is Speeding Up — and What Founders Can Do About It

Despite the M&A downturn we’ve seen in 2025, with overall deal volumes dipping 9% in the first half of the year, AI continues to buck the trend. This year’s $220 million acquisition of Voyage AI by MongoDB, and Meta’s $14.8 billion purchase of a 49% stake in Scale AI, highlight a shift that’s been building for some time: hyperscalers and large enterprise players are going downstream and moving faster.

The urgency is clear. As AI redefines infrastructure, customer expectations and competitive dynamics, these players are often choosing to buy rather than build in-house. Minority stakes and full acquisitions are becoming essential to staying relevant – and they’re happening earlier than ever.

This activity is no longer confined to foundational models. Early-stage companies pioneering new agentic automation layers and verticalized tooling are subject to inbound interest earlier in their lifecycle than ever before. For founders of these companies, it means that M&A and stake-building are no longer just exit paths. They’re becoming part of the company-building playbook.

Adapting to ‘buy vs build’ thinking

In previous cycles, early-stage startups were rarely acquisition targets. Larger companies preferred to build in-house when timelines, talent and resources allowed. But AI moves too fast for that playbook. Products that take six months to develop internally can be leapfrogged in half that time by nimble AI-first startups. 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 slow down in early-stage acquisitions. Today, hesitation could mean missing out on adopting crucial capabilities or proprietary data sets.

Founders who proactively shape their company’s narrative and can compellingly articulate their “impossible-to-build-fast” edge, be it defensible technology or unique customer data loops, are especially well positioned. The most strategic founders don’t wait – they define their long-term value early, making it clear to both the market and potential future partners.

Dealmaking still comes down to relationships

AI startups may move fast, but the M&A process rarely keeps up. Deals take time, stall and may fall apart – especially if diligence throws up red flags. Among the common (and avoidable) issues I’ve seen: unclear IP ownership, missing consent rights in key contracts, or messy cap tables. All of these are fixable if addressed early, and all significantly impact buyer confidence and execution speed.

Given the long lead times M&A often requires, founders should operate as though no deal is imminent.  It’s tempting to go all-in on a promising offer, but maintaining momentum with customers and partners is critical – especially if the deal slows down or falls through.

Beyond diligence basics, the most successful acquisitions are built on trust. That trust doesn’t start with a cold email when you’re ready to sell. It’s cultivated over time – often long before M&A is even on the table. Founders who regularly engage with corporate development teams and strategic partners build credibility and stay top of mind. Those relationships become invaluable when M&A conversations eventually begin.

What Today’s Buyers Are Really Looking For

So what stands out to acquirers in 2025? In my experience, AI startups that attract serious inbound interest early share three key characteristics:

1. Clear ROI: Solutions that deliver measurable time or cost savings, especially in high-friction workflows, resonate strongly with enterprise buyers. The value must be obvious and defensible.
2. Seamless integration into enterprise stacks: Products that fit into existing workflows without major changes to infrastructure are often easier to integrate. Seamless APIs, compatibility with cloud data warehouses or BI tools, and intuitive UI/UX all help.
3. Security and explainability: As AI adoption matures, governance and auditability are no longer “nice to have.” Buyers expect products that can be deployed in compliance-sensitive environments, with clear mechanisms for oversight and risk management.

A good example is Deasy Labs, a startup specialising in discovery and enrichment of unstructured data for AI applications. It was recently acquired by Collibra, which was looking to enhance its platform capabilities for customers to work with unstructured files. Founded in 2023, Deasy is a perfect illustration of how AI startups that solve a critical business need and build “impossible-to-build-fast” capabilities naturally attract acquisition interest from incumbents looking to accelerate their own roadmaps.

So, What Should Founders Do Next?

For AI founders, interest from corporate buyers should no longer be viewed only through the lens of exit strategy. In many cases, strategic investments and M&A can be a springboard for scale. The companies that embrace this mindset early – and reflect it in how they build products, acquire their customers  and form partnerships – are best positioned to thrive.

This isn’t about reacting to market shifts. It’s about anticipating commercial interest and laying the groundwork before an acquirer ever knocks. Founders who understand this dynamic and incorporate it into their roadmap from day one will be the ones best positioned to navigate and shape the next wave of AI dealmaking.