Artificial intelligence companies are driving a surge in major M&A activity, accounting for more than a quarter of deals valued at $5 billion or above this year. Latham & Watkins, a global law firm, has emerged as the clear winner in capturing this lucrative legal work, advising on $110.5 billion worth of AI-related transactions—nearly double that of its closest competitor.
The big picture: AI’s influence on the M&A landscape extends beyond pure-play AI companies to include deals supporting AI infrastructure, security services, and power demands driven by data center expansion.
Key details: Of nearly 90 transactions valued at $5 billion or more through September, 23 involved AI companies directly or provided services supporting the AI ecosystem.
- These deals encompass companies responding to AI-driven power demands and those providing AI security, services, or infrastructure support.
- The analysis covers transactions from January through last month, highlighting AI’s growing influence on corporate dealmaking.
Who’s leading the pack: Latham & Watkins dominated AI M&A advisory work with $110.5 billion in deal value.
- Wachtell, Lipton, Rosen & Katz, another major law firm, followed at $63.7 billion in AI-related transactions.
- Cleary Gottlieb Steen & Hamilton rounded out the top three with $58.1 billion in deal advisory work.
Why this matters: The concentration of AI M&A work among top-tier law firms reflects both the complexity of these transactions and the premium clients are willing to pay for specialized expertise in this rapidly evolving sector.
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