A top dealmaker at Barclays says the artificial intelligence (AI) arms race is setting the stage for an unprecedented takeover cycle.
In an interview, Andrew Woeber, global head of mergers and acquisitions at the British universal bank, says he expects the biggest tech firms in the world to ink a massive 12-figure deal within a year, reports Bloomberg.
“There will be transactions that defy our imagination within the broader AI spectrum. Don’t be surprised to see a $100 billion plus deal within the next year. Big platforms are going to make big bets.”
If a $100-billion deal comes to life, it would be the largest in any sector since AT&T–Time Warner at about $110 billion including debt in 2018.
This year, hyperscalers and model labs are green-lighting once-unthinkable capital plans. In January, OpenAI’s Project Stargate outlines up to $500 billion of AI-infrastructure investment over four years, with an initial $100 billion tranche.
Meanwhile, Amazon, Microsoft, Alphabet and Meta together could spend roughly $320 billion on AI infrastructure this year alone, according to recent projections.
According to Woeber, the amount of money being spent in the AI space is triggering an air of exuberance among investors and dealmakers.
“The mood of our clients has clearly shifted from caution to confidence and action. In the last few months, we have seen a major acceleration in deal activity that continues to build.”
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