There is a gold rush in tech M&A and the gold is talent to develop and integrate artificial intelligence (AI) technology. Faced with a shortage in skilled employees, buyers are using “acquihires,” a discreet M&A strategy that oftentimes flies under the news radar, to bolster AI benches.

The surge in AI acquihires is likely to persist for the foreseeable future. Leading technology companies are dedicating a significant share of their R&D budgets to AI research. Pitchbook reported that in 2020 Facebook, Apple, Microsoft, Google and Amazon spent a combined $133.5 billion on R&D with a significant portion budgeted for AI. Globally, there were 286 AI-related acquisitions in 2019. In 2020, the number of AI transactions increased to 449, an annual growth rate of over 50%, and 2021 appears to be keeping pace.