Why artificial intelligence startups are most sought-after in last 4 years

Artificial intelligence startups are currently sought after the most as acquisitions and mergers have increased by as much as seven times. Corporate tech giants such as Google are competing to acquire private intelligence startups, according to a CB Insights report.

There have been over 20 acquisitions of AI startups in 2016 itself. The most recent being Twitter's acquisition of visual-processing startup Magic Pony Technology.

Most of the AI startups were acquired within 4 years of initial funding, says the report. Merger and acquisitions (M&A) activity was up to over 35 transactions in 2015 from 5 in 2011.

Companies such as Google, IBM and Apple have acquired 2 companies each last year. Apart from this Amazon and Salesforce have joined the race with 3 AI-startup acquisitions each last year.

Google has acquired the most AI startups over the last 5 years. It acquired 10 AI startups since 2011.

Apart from Magic Pony Technology, Twitter acquired Madbits, Whetlab and TellApart.

Companies in the AI category include those developing core AI algorithms as well as those applying AI solutions to specific industries like healthcare and cyber-security.