×
Gartner: Companies are selling assets to fund new AI investments
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

The emerging trend; Major companies are increasingly considering the sale of non-core assets specifically to fund artificial intelligence projects and developments.

  • A Gartner survey reveals that 90% of Chief Information Officers are concerned about managing the costs associated with AI implementation
  • Nearly all senior data leaders (98%) at Fortune 1000 companies anticipate increasing their AI spending in 2025
  • Traditional cost-cutting measures like staff reductions and budget reallocation are being supplemented by more dramatic strategic moves

Notable transactions; Recent major divestitures by technology companies signal a growing willingness to sell valuable assets to fund AI initiatives.

  • Synopsys sold its security testing software business for $2.1 billion
  • OpenText divested its application modernization business for $2.28 billion
  • According to an EY survey, 59% of IT sector CEOs plan to pursue divestment, spin-off, or IPO within the next year

Industry perspective; Technology sector experts and analysts offer varying views on the motivations behind these strategic moves.

  • James Brundage of EY notes that companies, particularly in the IT sector, are fundamentally reevaluating their business models to accommodate AI investments
  • Some industry observers express skepticism, suggesting that divestitures may be driven by multiple factors beyond just AI funding
  • The trend appears most pronounced in the technology sector but shows signs of potentially expanding to other industries

Alternative funding approaches; Companies are exploring multiple financing options beyond asset sales to support their AI initiatives.

  • Private equity investments remain a significant source of AI funding
  • Creative financing solutions, including private credit arrangements, are emerging as alternatives to traditional funding methods
  • Organizations continue to employ conventional cost-reduction strategies alongside these newer approaches

Strategic implications; The willingness to divest established business units represents a significant shift in how companies view AI’s strategic importance.

  • This trend suggests that many organizations see AI as so crucial to their future that they’re willing to reshape their core business to fund it
  • The movement could lead to significant restructuring across industries as companies realign their portfolios around AI capabilities
  • Questions remain about the long-term sustainability and wisdom of funding AI through asset sales, particularly if the expected returns don’t materialize
Companies look to sell off assets to pay for AI investments

Recent News

Facepalm: AI radio host fools Australian listeners for months

Australian radio station's undisclosed AI host "Thy" reached 72,000 listeners for months, raising ethical concerns about transparency in broadcasting.

AI tackles social media’s content moderation challenges

AI systems prioritize users' explicit preferences rather than simply tracking click behavior, potentially creating a more intention-driven social media experience.

Ed. Secretary Linda McMahon has 90 days to figure out AI integration in schools

Department of Education must develop comprehensive plans for classroom AI tools, teacher training, and funding mechanisms within 120 days despite implementation challenges.