The pace of activity is clear, but deal sentiment remains below its long-term average, according to BCG. The market is also split. PwC reports that power and data centers are in high demand while software has cooled as buyers reassess AI-driven disruption. The reporting does not establish whether the current pace will hold through the rest of 2026. Terms for the SpaceX agreement to acquire Anysphere, the company behind Cursor, were reported at $60 billion, and that deal's status beyond the agreement is not covered in the research.
For attorneys, the key distinction is between infrastructure-layer assets, which command premium valuations, and application-layer companies, which face correction. Diligence on AI-focused targets should account for that gap in valuation and durability. Consolidation is also reaching agent tools, with search, security, evaluation, training, inference, orchestration, data access, and governance now treated as acquisition categories. Clients acquiring or selling in these areas should expect buyers to prioritize AI features that add to existing platforms. CB Insights counted 266 AI M&A deals closed in Q1 2026, up 90% year over year, so deal volume alone will keep generating transaction work.