AI news story
Morgan Stanley's Simkowitz on AI Financing, M&A Resurgence
Morgan Stanley Co-President Dan Simkowitz discusses current market conditions, AI financing, and a solid dealmaking backdrop fueling a 'resurgence' in M&A. He talks with Katie Greifeld and Romaine Bostick at the Milken Institute Global Conference in
Editor's take
Morgan Stanley's co-president observes a renewed appetite for mergers and acquisitions, specifically highlighting AI as a significant driver of this activity.
This resurgence is particularly relevant as it signals a potential shift in how AI development is being funded and consolidated. Companies are likely looking to acquire AI capabilities or talent to accelerate their own AI roadmaps, impacting both established tech giants and emerging AI startups. The availability of capital for AI-focused M&A suggests a growing confidence in the long-term commercial viability of AI technologies.
Future observation should focus on the types of AI companies being acquired: Is it foundational model developers, specialized AI application providers, or infrastructure companies? Additionally, tracking the valuation multiples for these deals will provide insight into market expectations for AI's profitability.
Signal score: 5
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Original reporting
This story summarises reporting published by Bloomberg. Read the original article at Bloomberg.