Big Tech Bets Big: AI and Infrastructure Fuel 2025’s Megadeal Boom

Tech Megadeals Surge in 2025

2025 redefined technology consolidation as total deal value reached a four-year high of $817 billion in the third quarter. While overall transaction volume dipped, the market shifted toward massive strategic megadeals exceeding $1 billion. Artificial intelligence and its necessary infrastructure acted as the primary engine for this high-stakes recovery throughout the year. The year's largest transaction saw a private equity consortium led by Saudi Arabia’s Public Investment Fund agree to acquire Electronic Arts for $55 billion. This move represents the largest leveraged buyout in gaming history and allows the publisher to pivot toward AI-integrated entertainment away from public market scrutiny. According to Baker McKenzie, shareholders approved the acquisition in late December, signaling a massive consolidation of interactive media assets.

Alphabet made headlines by securing cloud security leader Wiz for $32 billion, representing the largest acquisition in the search giant's history. This landmark deal was followed closely by Palo Alto Networks’ $25 billion purchase of CyberArk to dominate the identity security sector. These transactions highlight how protecting cloud environments has become a prerequisite for widespread enterprise AI deployment.

Infrastructure consolidation also peaked as Hewlett Packard Enterprises closed its $14 billion acquisition of Juniper Networks to boost its AI networking capabilities. Meanwhile, Meta executed a record-breaking strategic investment by spending $14.3 billion for a 49% stake in Scale AI. This unique deal brought Scale AI's leadership into Meta's executive ranks, setting a new valuation benchmark for high-level talent in the data sector.

Salesforce rounded out the major software activity by finalizing its $8 billion acquisition of Informatica in November. This integration allows Salesforce to feed its proprietary AI agents with governed, high-quality enterprise data. The success of this deal, which previously stalled in 2024, reflects a renewed appetite for vertical integration among established software giants aiming to maintain market dominance.

The technology sector defined 2025 through massive megadeals that pushed global deal values to an $817 billion peak in the third quarter. Even as total deal volume dropped to its lowest point in years, strategic buyers paid record premiums for critical artificial intelligence and infrastructure assets. This paradox confirms a market where dominant players are doubling down on scale to weather economic uncertainty and shifting regulatory priorities.

In a historic move for the interactive media industry, Electronic Arts agreed to a $55 billion take-private acquisition by a consortium led by Saudi Arabia’s Public Investment Fund. Alphabet also completed its largest acquisition ever by purchasing cloud security platform Wiz for $32 billion in March. These transactions highlight a significant increase in corporate confidence and a belief in a more permissive environment for big-ticket tech consolidations.

Enterprise technology giants prioritized platform consolidation, led by Palo Alto Networks' $25 billion deal for identity security leader CyberArk. Hewlett Packard Enterprise followed suit by closing a $14 billion acquisition of Juniper Networks to bolster its networking capabilities for AI workloads. These acquisitions represent a strategic pivot toward controlling the entire technology stack, from physical hardware to advanced identity protection.

Talent acquisition reached a fever pitch with Meta’s $14.3 billion investment in Scale AI, which functioned as a massive acquihire of its core leadership team. This deal mirrors similar maneuvers by Microsoft and Google to secure top-tier researchers while attempting to bypass the full weight of traditional antitrust investigations. According to Baker McKenzie, high-performance human capital is now being priced at levels previously reserved for major industrial mergers. This consolidation trend signals a fundamental transition toward platformization where established giants seek to own every layer of the digital economy. By absorbing specialized cybersecurity and infrastructure firms, these leaders are insulating themselves from supply chain volatility and tightening their grip on enterprise data. The rise of circular investments between hardware providers and cloud hosts suggests that future competition will be defined by who controls the physical compute layer and the specialized talent required to operate it.