Market Reports

FY 2025 Artificial Intelligence Sector M&A Review

Strategies, Valuations, Predictions
10 February 2026
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by AIMG

The FY 2025 Artificial Intelligence Sector M&A Review provides a comprehensive analysis of global merger and acquisition activity across the AI ecosystem, highlighting a decisive strategic shift from “scale” to “scope” deals, where acquirers prioritised capability acquisition over market consolidation.

The report examines major transactions across AI Infrastructure & Compute, Data Infrastructure & Services, Enterprise AI Platforms, Core AI Platforms, and AI Governance & Security, with particular emphasis on the rise of asset-heavy infrastructure investments, the surge in AI security acquisitions, and increasing regulatory intervention affecting deal certainty. It also presents detailed valuation benchmarks, including average deal size ($4.88bn), revenue multiples (11.6x), public market comparables, Rule-of-40 performance analysis, and valuation drivers such as growth, recurring revenue, and scale, positioning 2025 as a year defined by infrastructure dominance, security-led consolidation, and premium valuations for scalable AI platforms

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