Traditional acquisitions are becoming impossible in the current regulatory environment. Google’s approach—hiring talent and licensing technology without taking equity—represents the future of tech M&A:
Historical precedent: Scale AI lost customers as a result of its deal with Meta, whereas Inflection had to pivot entirely from consumer AI after its deal with Microsoft.
Strategic Lessons
1. Speed Beats Size
Google moved fast when OpenAI’s deal stalled. In AI, momentum matters more than money.
2. Talent Trumps Technology
$2.4 billion for ~30 people seems insane until you realize those people can build the next $100 billion business.
3. Regulatory Reality
Traditional M&A is dead for big tech. Reverse-acqui-hires are the new normal.
4. Integration Wins
Standalone tools lose to integrated platforms. Google understands this; OpenAI is learning.
Conclusion: The AI Chess Match Continues
The Windsurf reversal isn’t just about one deal—it’s about the new rules of tech competition:
Google’s move shows they’ve learned from their AI slowness. OpenAI’s loss reveals their structural disadvantages. Microsoft watches and plans. Meta poaches aggressively.
The AI wars aren’t ending—they’re accelerating. And the battlefield just shifted from models to tools, from research to products, from technology to talent.
The winners will be those who understand: In AI, you’re not buying companies. You’re buying the future, one genius at a time.
And at $100 million per genius, the future is expensive.
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.
