AI Rollup: Silicon Valley’s New Buyout Playbook Is Hitting Wall Street
Venture capital is buying its way into the AI transformation that enterprise software hasn't delivered. Instead of selling AI tools to companies, venture firms are
Venture capital is buying its way into the AI transformation that enterprise software hasn't delivered. Instead of selling AI tools to companies, venture firms are buying legacy companies outright and rebuilding them around AI from the inside. The bet puts VCs on offense and leaves traditional private equity, which spent the last cycle buying enterprise software at peak prices, on defense. The strategy is known in Silicon Valley as the AI rollup. Over the past six months it has crossed into public markets twice: General Catalyst and Trian's $7.6 billion take-private of Janus Henderson (JHG) in December, and Long Lake Management's $6.3 billion agreement in May to take American Express Global Business Travel (GBTG) private at a 65 percent premium.
CNBC's Deirdre Bosa has the story. Chapters 0:00 - 0:55 Introduction 0:56 - 4:31 The AI rollup 4:32 - 5:34 Where private equity got it wrong 5:35 - 7:20 A risky bet Anchor and Columnist: Deirdre Bosa Produced by: Jasmine Wu Edited by: Andrew Evers Senior Director of Video: Jeniece Pettitt Animation: Emily Park » Subscribe to CNBC » Subscribe to CNBC TV About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered.
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