Google to purchase artificial intelligence company DeepMind
Sources are reporting that Google plans to acquire an artificial intelligence company called DeepMind Technologies for an estimated $400 million.
According to the DeepMind website, the company was co-founded by renowned computer game designer, AI programmer and neuroscientist Demis Hassabis in 2011. DeepMind, which is currently based in London, had previously spoken with Facebook about an acquisition that never came to fruition, reports Forbes.
Re/code, a technology news outlet, speculates that Google's main goal in purchasing DeepMind is to gain access to the talented individuals who work there. The acquisition was reportedly led by Google CEO Larry Page.
"Though DeepMind may not be a household name in tech, sources in the artificial intelligence community describe the company as a formidable AI player and say it has been aggressively recruiting in the space," explains Re/code. "One source said DeepMind has a team of at least 50 people and has secured more than $50 million in funding. This person described DeepMind as 'the last large independent company with a strong focus on artificial intelligence.'"
Forbes notes that this is Google's fourth acquisition in 2014. Earlier this month, the internet giant purchased Bitspin, Nest Labs and Impermium.
Clearly, the executives at Google are privy to the fact that business acquisitions can yield satisfying results for everyone involved. Not only do these kinds of deals help companies evolve by giving them access to the best minds in certain industries, but they often lead to a significant growth in revenue.
The acquisition process is understandably complex, which is why there are merger and acquisition firms that can help from beginning to end.