AI’s M&A Moment: A Discussion on Navigating Innovation, Investment and Legal Complexity with Baker McKenzie’s Derek Liu

M&A Partner Derek Liu has been featured in the June 2025 issue of The M&A Journal for his insights on the intersection of artificial intelligence and dealmaking.

In the article, Derek offers a clear and compelling framework for understanding the AI ecosystem, dividing it into three layers:

• Infrastructure: Data centers and semiconductors powering AI.
• LLMs (Large Language Models): The engines behind generative AI tools, the economics of building LLMs and the tension between proprietary and open-source models.
• Applications: AI-powered tools integrated into everyday business, where most M&A activity is happening.

Derek explains how the application layer is driving a surge in acquisitions as established companies look to fast-track AI integration by acquiring nimble startups. 

Read the full article.