US Regulator FTC Investigates Acqui-Hires By Major Tech Firms

The U.S. Federal Trade Commission (FTC) is reviewing a growing trend in the tech industry where large companies hire startup employees without buying the company, Bloomberg News reported. FTC Chairman Andrew Ferguson said the agency is looking into these “acqui-hire” deals to ensure they are not being used to bypass antitrust regulations.

An “acqui-hire” is a business practice where a company buys a startup primarily to hire its employees, not for its products or services.

Recent examples include Nvidia licensing technology from Groq and hiring its CEO, Microsoft acquiring a top AI executive via a USD 650 million licensing deal, and Meta hiring Scale AI’s CEO for USD 15 billion without acquiring the firm. Amazon has also hired founders from Adept AI. Ferguson indicated that Biden-era antitrust enforcement has prompted companies to pursue this approach. While regulators are scrutinising these deals, none have been reversed. The issue highlights ongoing tensions between tech expansion strategies and federal antitrust oversight, particularly amid recent legal and political shifts affecting the FTC’s structure.