Big Tech's Clever Trick to Hire AI Talent Without Raising Eyebrows

Big tech companies are getting sneaky. They're hiring entire teams from startups without buying them outright. This way, they avoid the usual checks and balances that come with big mergers. The FTC is onto them. They're worried this could stifle competition in the AI world before it even gets a chance to grow.

The FTC's Concern

The FTC chairman, Andrew Ferguson, has his eye on these deals. He's not sure if these so-called "acqui-hires" are just a clever way to dodge antitrust rules. He's keeping a close watch. The problem isn't just one or two hires. It's the pattern. Big companies are scooping up the best talent, leaving startups struggling to survive.

Examples of Acqui-Hires

• Nvidia struck a deal with AI chip startup Groq. They hired Groq's founder, Jonathan Ross, as their chief software architect. But they didn't buy the company.
• Google did something similar. They licensed tech from AI coding startup Windsurf and hired its CEO and some staff.
• Meta Platforms took a minority stake in Scale AI and appointed its CEO to a senior role.

These deals don't look like acquisitions. But they might as well be.

The FTC's Next Steps

The FTC is concerned. They think these deals could be just as harmful to competition as outright acquisitions. By absorbing startup teams, big firms might be killing off future rivals before they even get a chance to compete. The FTC's review could lead to new rules or enforcement actions. Even the hint of scrutiny could change how tech companies do business.

The Bigger Picture

This is a big deal. It's not just about who owns what. It's about who controls the talent. And that could shape the future of AI. The FTC's actions could test whether current antitrust laws are up to the task. They need to address competition risks that come from the quiet consolidation of talent, not just corporate consolidation on paper.