The Great Wave of AI M&A: 266 Acquisitions in Q1 2026 and the New Map of Technological Power
CB Insights recorded 266 M&A deals in AI in the first quarter of 2026, a 90% increase compared to the same period in 2025. The total global M&A value reached US$ 4.9 trillion in 2025, a new record. In 2025, the battle for AI shifted from foundational models to data, cloud, and governance infrastructure, with US$ 157 billion invested in this layer.
The first quarter of 2026 confirmed that the technology mergers and acquisitions market has reached a new level. CB Insights recorded 266 M&A deals in AI from January to March 2026, representing a 90% increase compared to the same period in 2025. The total global M&A value reached US$ 4.9 trillion in 2025, a historic record, with almost half of the strategic value above US$ 500 million coming from native AI companies or businesses with explicitly stated AI theses. In 2024, this proportion was 25%.
The Shift in Battleground
The most strategic observation regarding the deals of 2025 is where the capital was allocated. Not to foundational models, but to the infrastructure that supports them. US$ 157 billion was invested in 33 or more acquisitions in data, cloud, and governance. The buyers' thesis has been consistent: generative artificial intelligence is as valuable as the data that powers it and the infrastructure that governs it.
Salesforce’s acquisition of Informatica for US$ 8 billion clearly expressed this logic: quality agentic AI requires reliable, integrated, and governed data. ServiceNow paid US$ 3 billion for Moveworks to obtain a natural language platform that now powers its workflow automation. IBM paid US$ 11 billion for a data streaming platform.
Consolidation in Security
The cybersecurity segment contributed some of the largest deals of the cycle. Palo Alto Networks completed the acquisition of CyberArk for US$ 25 billion in February 2026, establishing identity security as the fourth pillar of its platform. CrowdStrike acquired SGNL for US$ 740 million in January 2026, as well as Bionic (US$ 500 million), Onum (US$ 290 million), and Pangea (US$ 260 million) throughout 2025.
Over 400 cybersecurity M&A deals were announced globally in 2025, a volume 22% higher than the previous year, with the total value increasing by nearly 270%.
What Is Being Acquired
Analysis by category reveals what major platforms have identified as strategic gaps: identity security (CyberArk, SGNL), observability and cloud monitoring (Chronosphere by Palo Alto), natural language workflow automation (Moveworks by ServiceNow), and data management and governance (Informatica by Salesforce, streaming platforms by IBM).
For M&A and Strategy Executives
The pattern of deals from 2025-2026 suggests that acquiring AI capability is no longer a strategic option for major platforms; it has become a competitive obligation. Mid-sized companies possessing data assets, specialised models, or AI governance capability have become acquisition targets with revenue multiples that rarely would be justified by conventional financial criteria. For CIOs and CTOs working with technology providers, it is worthwhile to monitor who is acquiring whom: acquisitions often change roadmaps, pricing, and support quality.