AI Velocity Forcing Shift from Traditional M&A to Strategic Partnerships

The traditional timeline for corporate mergers and acquisitions is being disrupted by the sheer speed of artificial intelligence development. Tony Kim, co-president of investment banking at Centerview Partners, notes that the industry is shifting away from conventional deal structures to accommodate what he describes as 'AI time.' In a recent appearance on Bloomberg Television, Kim highlighted the incompatibility between the typical 18-month closing window for major deals and the volatile nature of AI progress. Because the technological landscape can shift fundamentally every few months, long-term commitments based on current capabilities are increasingly viewed as risky or impractical. Kim emphasized that predictability in the AI sector is currently limited to very short windows, often less than three months. This volatility makes it nearly impossible for firms to set fixed terms for a deal that takes over a year to finalize, as the underlying technology may be obsolete by the time the transaction closes. Consequently, the market is seeing a pivot toward partnership-type transactions. These flexible arrangements allow companies to collaborate and integrate AI capabilities without the rigid constraints and lengthy timelines of a full acquisition, establishing a new operational norm for the technology sector.