Industry · 07 · Artificial Intelligence

The technology that is remaking software.

Foundation-model labs, applied AI and vertical SaaS, AI infrastructure (compute, data, MLOps), AI-native financial products, and governance — advisory for the businesses at the center of the most significant technology transition of the decade.

Coverage
Model · application · infrastructure · governance
Engagement Pattern
Growth capital, strategic capital, M&A, governance
Regulatory Reality
Outbound, export-control, EU AI Act in scope

Five sub-segments inside AI.

AI is not one market. Foundation-model labs operate on compute and talent; applied AI operates on enterprise distribution; infrastructure operates on capital intensity and platform alignment; financial products operate on regulatory perimeter. The firm's coverage extends across the set.

Foundation Models

Frontier-model labs, open-weight model developers, specialized-domain model builders, hosted-model service providers.

Applied AI & Vertical SaaS

Industry-vertical applications of generative and predictive AI, copilot and agent platforms, AI-enabled workflow software.

AI Infrastructure

Compute infrastructure (data centers, GPU access), data and labeling infrastructure, MLOps and developer platforms, observability.

AI-Native Financial Products

AI-enabled investment products, AI-driven underwriting platforms, AI-adjacent capital structures. Engaged with regulatory counsel.

Governance & Safety

AI governance platforms, model evaluation, audit, red-teaming, safety tooling, compliance infrastructure.

Adjacent Hardware

AI accelerators, edge inference hardware, advanced packaging for AI silicon — coordinated with the technology vertical.

Service lines mapped to the AI question.

Service Line
How It Applies in AI
Strategic positioning against incumbent platforms and AI-native challengers, capital strategy for compute-intensive businesses, governance design for high-impact AI products.
Strategic capital partnerships, acquisition mandates for AI-native consolidators, sell-side mandates for applied-AI businesses to platform acquirers.
Growth equity for applied AI, structured capital for infrastructure businesses, strategic corporate-venture capital, secondary tender for venture-stage AI businesses.
Public-readiness for AI-native and AI-enabled businesses; equity-story construction calibrated to the AI-aware investor base; SOX readiness and disclosure architecture.
CFIUS, Outbound Investment Security Program, export-control, and EU AI Act compatibility analysis. Engaged with counsel on every cross-border AI transaction.
Restructuring for businesses whose operating model has been displaced by AI — the AI-discount cohort in BPO, content services, and adjacent verticals.

Themes shaping the conversation in 2026.

  1. 01

    Capital intensity has separated the foundation-model tier.

    The compute, data, and talent investment required to operate at the frontier has consolidated the foundation-model layer into a small number of well-capitalized labs. The strategic question for the next tier is whether the right path is independent operation, platform alignment, or vertical specialization.

  2. 02

    Applied AI is now where the M&A activity is.

    The buyer set for credible applied-AI businesses includes the foundation-model labs, the established software platforms, the systems integrators, and selectively private capital. The disciplined process — defined buyer outreach, calibrated diligence access — matters more in this environment than the broadest auction.

  3. 03

    Infrastructure capital is at multi-year levels.

    Data center capacity, GPU access, and supporting infrastructure have absorbed capital at a level the prior decade did not see. The infrastructure business with credible long-term offtake commands a different multiple than the speculative-capacity proposition.

  4. 04

    The AI discount has reset expectations for AI-exposed services.

    The mirror of AI's capital tailwind is the AI discount applied to businesses whose moat is replicable by an AI-native competitor — BPO, content services, certain technical-services rollups. The restructuring posture in those segments is set out in the firm's perspective on the topic.

  5. 05

    Regulatory perimeter is part of the deal structure now.

    CFIUS, the Outbound Investment Security Program, export controls on advanced compute, and the EU AI Act collectively shape what cross-border AI transactions look like. The pre-LOI diligence package on a cross-border AI deal is materially heavier than it was three years ago.

Illustrative scenarios the firm has the judgment to advise.

These are archetypes drawn from partners' experience and the firm's coverage discipline. Each describes a typical client situation; specific outcomes vary.

Archetype · Strategic Capital

Applied-AI business raising strategic growth capital before scale-out.

The conversation is the right capital partner — a foundation-model lab, an enterprise software platform, or a sponsor with relevant portfolio. The firm helps frame which path preserves operating control through the next compounding stage.

Archetype · M&A

Vertical-AI founder evaluating strategic sale to a platform acquirer.

The buyer set is selective and the structure matters. The mandate is the controlled process — disciplined buyer outreach, IP and model diligence access, and a structure that preserves what the founders built.

Archetype · Cross-Border

AI infrastructure business with international capital interest.

The CFIUS analysis, the outbound-investment overlay (for the U.S. investor), and the export-control review on advanced compute access are all gating workstreams. The firm runs the commercial side with named regulatory counsel.

From the firm's library.

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