AI drives 25% of major M&A deals worth upwards of 5 billion dollars

Artificial intelligence companies are driving a surge in major M&A activity, accounting for more than a quarter of deals valued at $5 billion or above this year. Latham & Watkins, a global law firm, has emerged as the clear winner in capturing this lucrative legal work, advising on $110.5 billion worth of AI-related transactions—nearly double that of its closest competitor.

The big picture: AI’s influence on the M&A landscape extends beyond pure-play AI companies to include deals supporting AI infrastructure, security services, and power demands driven by data center expansion.

Key details: Of nearly 90 transactions valued at $5 billion or more through September, 23 involved AI companies directly or provided services supporting the AI ecosystem.

• These deals encompass companies responding to AI-driven power demands and those providing AI security, services, or infrastructure support.
• The analysis covers transactions from January through last month, highlighting AI’s growing influence on corporate dealmaking.

Who’s leading the pack: Latham & Watkins dominated AI M&A advisory work with $110.5 billion in deal value.

• Wachtell, Lipton, Rosen & Katz, another major law firm, followed at $63.7 billion in AI-related transactions.
• Cleary Gottlieb Steen & Hamilton rounded out the top three with $58.1 billion in deal advisory work.

Why this matters: The concentration of AI M&A work among top-tier law firms reflects both the complexity of these transactions and the premium clients are willing to pay for specialized expertise in this rapidly evolving sector.