Big companies ramp up deals to sell AI tools to businesses

In short: More big tech and software companies are making deals to bring AI tools into everyday business work.

What's going on

A new episode of TechCrunch’s Equity podcast points to a clear pattern, companies are racing to sell AI services to other companies. “Enterprise AI” is a common name for this, and it simply means AI made for workplace tasks, not for personal use.

Two of the best known AI companies, Anthropic and OpenAI, have both announced joint ventures aimed at helping businesses roll out AI. A joint venture is a shared project between two companies, like opening a shop together instead of competing on the same street.

Big spending is also showing up in buyouts. SAP, a major business software company, said it is spending about $1 billion to buy a German AI startup called Prior Labs. TechCrunch’s hosts suggested this is a sign that smaller startups building workplace AI tools may become targets for acquisition, meaning larger companies may buy them rather than build similar tools from scratch.

The same podcast episode also discussed a compute arrangement involving xAI and Anthropic. “Compute” is the processing power needed to run AI (think of it like renting a lot of heavy machinery, but for math). The hosts framed these kinds of deals as part of the rush to secure enough capacity to serve business customers.

What to watch

If this pace continues, expect more partnerships, buyouts, and infrastructure deals as companies try to lock in customers and resources. It could also shape upcoming IPO plans, since deal activity can change which companies stay independent and which get bought.

Source: TechCrunch AI