AI drives record M&A boom, but at what cost?

It seems artificial intelligence has become the new gold, and everyone wants a piece of the pie. The Mergers & Acquisitions (M&A) market is experiencing a real boom, with record volumes. It's not just AI driving this, there's also an abundance of available capital and a particularly accommodating regulatory environment.

Companies are snapping up AI startups and technologies at a rapid pace. It's a race to be first, or at least not too far behind. Robert Profusek from Jones Day noted that sellers' expectations remain too high, keeping private equity funds on the sidelines, waiting for better times or more reasonable prices.

The obvious question is: how long can this bubble, or rather, this enthusiasm last? AI company valuations have reached unprecedented levels, defying all market logic. It almost seems that just saying "we do AI" is enough to send the price skyrocketing.

Bloomberg reported that AI company valuations are reaching unprecedented levels, which rings a few alarm bells. This means that, despite the current frenzy, some fear the boom might deflate. Perhaps not all investments will turn out to be as brilliant as they seem today, and some might end up with nothing.