Big Tech’s ‘Reverse Acquihires’ Drain AI Startups of Talent

Large technology companies are intensifying their hunt for artificial-intelligence expertise by striking so-called “reverse acquihire” deals—buying fledgling firms primarily to secure their engineers—according to the Wall Street Journal’s Heard on the Street column and related commentary published over the weekend. The practice offers cash-rich platforms a quick influx of specialists as the race to commercialise generative-AI products accelerates. Engineers, now commanding multimillion-dollar pay packages, can often insist that acquirers leave unproven products behind and focus solely on absorbing the teams. Analysts warn the approach is hollowing out early-stage companies and eroding the startup culture that has long underpinned Silicon Valley’s innovation. With founders dissolving ventures once core staff are hired away, venture investors face thinner pipelines of independent AI businesses. Commentators note that the scramble marks a sharp break from the Valley’s earlier era of tacit non-poaching pacts: today, employees “hold all the cards,” as one Japan Times op-ed put it, leaving smaller firms struggling to retain talent against deep-pocketed rivals.