The Pattern: Traditional M&A is structurally broken for transformational AI deals. A 2-3 year regulatory review in a market where modelleadership changes quarterly means you’re buying a depreciating asset at an appreciating price.
The Bet: “License & Lift” deals—IP licensing plus talent migration—become the dominant deal structure for AI capability acquisition. By year-end, expect 15-20 of these deals with increasingly sophisticated structures.
Founder gets comparable economics without regulatory gauntlet
The Framework
Mental Model: Talent Extraction Archetype
License & Lift lets big tech acquire capabilities without triggering antitrust review. In AI, talent is the scarce resource—regulation shapes how it’s acquired.
The structure works because it separates what regulators care about (corporate control) from what acquirers actually want (capabilities and people). This isn’t a loophole—it’s a fundamental restructuring of how AI capabilities transfer between organizations.
Strategic Implications
For AI startups: License & Lift offers a viable exit path without the regulatory uncertainty of traditional M&A
For big tech: The ability to acquire capabilities without triggering review is a significant strategic advantage
For regulators: The structure challenges traditional antitrust frameworks built around corporate control
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
