Global M&A hits $1.2 trillion in AI-led boom

Global merger and acquisition activity surged past $1.2 trillion in the first quarter of 2026, driven largely by artificial intelligence-related investments and mega deals in the technology sector.

Despite geopolitical tensions linked to the war in Iran and broader market volatility, corporate dealmaking remained resilient, with data showing a 26% increase in total deal value compared to the same period last year, News.Az reports, citing Reuters.

However, the number of transactions fell by 17%, indicating a shift toward fewer but significantly larger deals. Several of the quarter’s biggest transactions were linked to companies seen as leaders in the AI race.

Equity investments and large funding rounds dominated activity, including major raises involving AI-focused firms, reflecting growing investor confidence in the long-term potential of the sector.

Cross-border deals also reached record levels, rising sharply as companies sought growth opportunities beyond domestic markets. The United States remained the top destination for international transactions, followed by the United Kingdom.

Analysts say companies are increasingly adapting to volatility rather than delaying deals, treating geopolitical and economic uncertainty as a permanent feature of the market rather than a temporary disruption.

Experts also note that multinational megadeals are becoming more attractive as firms look to diversify risk, strengthen supply chains, and secure access to larger and more stable markets.

News.Az 

By Aysel Mammadzada