Industry Report: Artificial Intelligence Q3 2025 [Solganick & Co.]

Key Report Highlights

• AI M&A Momentum Accelerates with Record Investment Activity
  The artificial intelligence market is projected to hit $758 billion in 2025, growing at an annualized rate of 27.7% through 2030. M&A activity has remained vigorous throughout the year, driven by enterprise adoption of agentic AI, multi-modal systems, and applied AI solutions. Strategic acquirers and SaaS vendors are actively integrating AI capabilities into platforms, with a clear pivot toward embedding AI into enterprise workflows over simply investing in foundational models.
• Applied and Agentic AI Dominate 2025 Deal Activity
  The dominant theme in AI M&A is a surge in applied AI and agentic AI technologies. Applied AI—integrated into verticals like healthcare, fintech, and manufacturing—has seen a 47% YoY rise in investment. Meanwhile, agentic AI, which enables autonomous execution of workflows, is emerging as a key frontier for acquisition, with companies like Google, Amazon, and OpenAI aggressively targeting capabilities in this space.
• Landmark Deals Highlight Strategic Shifts by Big Tech and SaaS
  Q3 saw several blockbuster transactions, including Alphabet’s $32 billion acquisition of Wiz (cloud security/AI), Meta’s $14.8 billion investment in Scale AI, and OpenAI’s $6.5 billion purchase of Jony Ive’s AI hardware startup, io. These deals illustrate Big Tech’s deepening investment in AI infrastructure, autonomous systems, and productized interfaces—signaling a major shift from research to monetization.
• Middle Market M&A Thrives with Vertical Specialization
  Beyond mega-deals, middle market AI companies remain highly attractive targets, especially those offering sector-specific tools in areas like data infrastructure, cybersecurity, healthtech, and automation. Transactions such as Workday’s $1.1 billion acquisition of Sanalabs and Atlassian’s purchase of Cycle show growing interest in platforms that enhance enterprise productivity, collaboration, and workflow orchestration.
• Valuations and Strategic Positioning Become More Nuanced
  Investors are increasingly focused on strategic indicators such as proprietary datasets, defensible algorithms, engineering team quality, and integration potential. Key valuation drivers include ARR growth, gross margin scalability, and vertical expertise. Companies with mature, IP-backed solutions and embedded enterprise use cases—especially in regulated sectors—are commanding premium multiples in both primary and secondary markets.

Solganick & Co. is a boutique investment bank specializing in M&A advisory services for software and IT services companies. Founded in 2009, the firm delivers strategic guidance and transaction execution for middle-market clients across high-growth sectors such as cloud services, cybersecurity, data analytics, digital transformation, AI consulting, and enterprise software.

With offices in Los Angeles and Dallas, Solganick leverages a data-driven, industry-focused approach to connect founders, private equity, and strategic acquirers. The firm advises on sell-side and buy-side mandates for companies typically generating $10 million to $200 million in revenue and $2 million to $20 million+ in EBITDA.

Solganick’s senior team brings deep domain expertise and a targeted network of technology buyers and investors. The firm is consistently recognized among the top investment banks in the U.S. for technology services M&A, and conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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