How Amazon’s hiring of Adept AI startup avoids antitrust scrutiny
What did Reid Hoffman predict about AI deals?
Reid Hoffman predicted that the acquisition pattern of hiring a majority of a startup's employees and licensing its technology, as seen with Microsoft and Inflection, would become a trend for future AI deals to avoid antitrust scrutiny. This prediction has been reflected in Amazon's recent hiring of most of the team behind Adept, another AI startup.
What is the new Big Tech playbook for AI acquisitions?
The new Big Tech playbook for AI acquisitions involves hiring most of the employees from AI startups and licensing their technology, rather than outright acquiring the companies. This approach is designed to avoid antitrust scrutiny and allows startups to maintain their talent and technology while benefiting from the resources and scale of major tech companies1.
What challenge is Adept facing financially?
Adept was facing financial challenges, as it was running out of money and needed to spend significant attention on fundraising for its foundation models instead of focusing on bringing its agent vision to life. This situation made it difficult for Adept to compete in the costly AI industry.