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Who is investing in AI?

The desire among big corporations to use AI – and the shortage of available talent – is driving a wave of M&A deals. It is perhaps little surprise that the world’s biggest tech companies, led by Google, are very active in the space. But deal activity extends beyond the tech sector, as evidenced by Roche’s $1.9bn acquisition of Flatiron Health (which harnesses AI to improve cancer treatment).

Worldwide spending on cognitive and artificial
intelligence to reach $19.1bn in 2018; a 54.2%
increase from 2017.

 

Top investors in AI start ups by early 2018

Top investors in AI start ups by early 2018
$3.9bn
$871m
$786m
$776m
$690m

The new spring in AI is the most significant development in computing in my lifetime. Every month there are stunning new applications and transformative new techniques. But such powerful tools also bring with them new questions and new responsibilities.

Serge Brin, Co-founder, Google 

Investors looking to buy AI businesses need to ensure they are securing their rights to the target’s key value drivers (for example algorithms, software and data), as well as structuring the deal to take account of the risks associated with this emerging technology. The evolving regulatory environment should also be a key consideration given its potential to affect current and future revenue streams.