Big Tech's playbook for swallowing the AI industry

Amazon's recent hiring of the team behind Adept AI startup is seen as a strategic move to avoid antitrust scrutiny. The hiring of 80% of Adept's employees, including CEO David Luan and co-founders, along with licensing their technology, mirrors a pattern observed in Microsoft's acquisition of Inflection. This tactic, termed a "reverse acquihire," allows tech giants like Amazon to access cutting-edge AI technology without facing regulatory obstacles associated with traditional acquisitions. Adept, which had raised significant funding but was facing financial challenges, found a lifeline through Amazon's hiring strategy. This approach reflects a trend in the industry where cash-rich Big Tech companies are leveraging their resources to absorb promising AI startups. The current antitrust landscape restricts direct acquisitions, leading companies to adopt alternative methods to integrate innovative technologies into their portfolios. This maneuver highlights a shift in the tech industry's acquisition strategies, emphasizing talent acquisition and technology licensing as a means to navigate regulatory constraints and drive innovation in the AI sector.