Large companies frequently acquire startups for talent instead of products, a process termed acquihires. In the context of escalating competition for AI talent, firms like Meta and Google are employing reverse-acquihires, hiring top talent and licensing technology while leaving other employees behind. This practice avoids regulatory scrutiny associated with full acquisitions. An example is Google's hiring of Windsurf's leadership and R&D team, an event that left remaining employees without direction. Similarly, Meta's acquisition of Scale AI also illustrates this trend, significantly involving a substantial financial commitment without complete ownership.
Google DeepMind hired Windsurf CEO Varun Mohan and cofounder Douglas Chen, along with other key members of their R&D team, with a deal that included Windsurf technology.
Meta finalized a deal with data labeling company Scale AI, acquiring top engineers, including founder Alexandr Wang, for a $15 billion price tag.
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