US senators have criticized big tech companies for adopting a strategy that involves recruiting talent and acquiring products from smaller AI startups.

In the fast-paced realm of artificial intelligence, major tech firms are aggressively recruiting talent and gaining access to innovative AI technologies from startups, often without formal acquisitions. This tactic, described as a "reverse acqui-hire" or poaching, is raising concerns in Washington about potential monopolistic practices. For instance, Amazon recently struck a deal with Adept, a San Francisco-based AI company, to absorb its CEO and key staff while obtaining a license to its AI systems and data.

This approach differs from traditional acqui-hires, where a company is acquired primarily for its talent. Instead, firms like Amazon are selectively hiring talent and licensing technology, leaving the startup intact but effectively neutralized in terms of competition. This strategy has prompted calls from U.S. senators, including Ron Wyden, Elizabeth Warren, and Peter Welch, for antitrust investigations into such practices to prevent undue market consolidation.

In response, tech giants like Microsoft, Amazon, and Google are exercising caution in their AI acquisitions amidst increased regulatory scrutiny. For smaller AI startups, the allure of being absorbed by larger firms can offer financial relief from the high costs of AI development but risks stifling independent innovation in the sector. The evolving landscape of AI acquisitions underscores ongoing debates over competition, innovation, and regulatory oversight in the technology industry.