Acquihires, often used by Big Tech, are a ‘red flag,’ DOJ antitrust head says

Companies’ efforts to sidestep U.S. antitrust scrutiny through tactics such as “acquihires” – a strategy some Big Tech firms use to snap up talent at artificial intelligence startups – are a “red flag,” the top U.S. antitrust enforcer told Reuters on Wednesday.

Acquihires, ‌where the ⁠world’s ⁠biggest technology firms pay large sums in deals with promising startups to take their technology and talent, but stop short of formally acquiring the target, are increasingly being viewed by antitrust regulators as an attempt to evade merger rules. In one recent example, Nvidia in December agreed ⁠to license ‌chip technology from startup Groq and hire its CEO, without buying the company.