The Great AI Race: Strategic Moves in the Tech Industry and the Implications for Corporate Law

Artificial Intelligence (AI) is revolutionizing industries and shifting the tectonic plates of the global business landscape. The latest developments in generative AI, including large-language models such as OpenAI's GPT-4, are being rapidly adopted across sectors. Tech giants and startups alike are locked in an intense race to harness the full potential of this powerful technology. This article delves into the fascinating narrative of recent AI acquisitions, while also providing undergraduate students with insights into the potential commercial, legal, and financial implications of these moves.

Generative AI has become the latest frontier of technological advancement. Companies, both established and emerging, are grappling with the strategic decision of whether to buy, partner, or build their own generative AI capabilities. This week, the pendulum has swung towards acquisition, as evidenced by Databricks' $1.3 billion purchase of MosaicML, a generative AI startup, and Thomson Reuters' acquisition of Casetext, an AI company specialising in legal services, for $650 million.