In the world of enterprise technology, leaders are often faced with the pivotal "build, buy, or partner" decision when looking to adopt innovative solutions. This conundrum has always been pronounced in the realm of Artificial Intelligence (AI), given the complexity and potential implications of AI applications. However, with the advent of OpenAI and the surge in startup activity focused on AI, the dilemma is increasingly being settled.

A glance at recent news suggests a strong trend towards acquisition and investment in AI startups, rather than building in-house AI solutions.

The AI startup MosaicML, an expert in open-source AI models, was recently acquired by Databricks for a staggering $1.3 billion, equating to $21 million per employee. Another prominent player, Thomson Reuters, shelled out $650 million for the legal AI assistant, Casetext. These are not isolated instances; hundreds of millions more are being allocated by large tech companies to secure minority stakes in AI startups.

Why such a shift? The primary reasons are manifold:

Efficiency & Expertise:

AI startups bring to the table deep expertise and sophisticated AI models that are often too resource-intensive for larger companies to develop in-house.

Competitive Advantage:

By investing in or acquiring AI startups, established companies gain a strategic edge in the marketplace, as they can leverage cutting-edge AI technologies without having to develop them from scratch.

Insider View & Future Acquisition Targets:

Investing in startups allows companies to have an insider's view of the technical workings of potential acquisition targets.


Corporate investing in AI startups also helps larger firms diversify their technology portfolio, thereby spreading risk and driving innovation.

Investment trends continue

The interest is not limited to tech companies alone. Consultancies and other non-tech firms are significantly boosting their AI investments. Accenture recently acquired Bangalore-based Flutura, which is expected to enhance its AI offerings in multiple industries such as energy, chemicals, metals, mining, and pharmaceuticals. PwC US, meanwhile, has revealed plans to invest $1 billion over the next three years in AI projects and workforce upskilling.

Salesforce Ventures, on the other hand, is doubling down on AI, announcing a $500 million boost to its generative AI fund. The venture arms of other tech giants like Google and Microsoft are following suit, signaling a bullish outlook on AI startups.

The winner is....

The explosion of AI-focused startups, along with the launch of OpenAI, seems to be steering the "build, buy, or partner" decision towards "buy" and "partner." As this trend continues, we can expect an even faster adoption of AI technologies, driving business growth and catalyzing digital transformation in the enterprise landscape.

How can Traction Technology help?

Traction Technology is a ground-breaking platform engineered expressly to eliminate internal innovation silos, thereby enabling enterprises to seamlessly collaborate and align their business needs with promising technologies. By providing dynamic features that promote collaboration and innovation, they aim to accelerate digital transformation in the enterprise.

Here's how Traction Technology can help:

Harnessing OpenAI: How the 'Build, Buy, Partner' Dilemma is Evolving in the Enterprise

Discovery of Relevant Startups: Traction Technology helps established companies discover relevant advanced technologies aligned with their strategic goals and innovation areas. It curates startups based on different industries, technology trends, and areas of business interest, making it easier to find potential partners or investment opportunities and share this information across the enterprise.

Collaboration and Engagement Tools: Traction Technology offers tools that help manage the engagement process with startups. It provides a structured approach to evaluating, tracking, and managing interactions with multiple startups across multiple project and pilots, improving efficiency and collaboration.

Data-Driven Insights: The platform provides data-driven insights to help make informed decisions. This includes information on startup funding, growth indicators, customers and competitors, which can help in assessing potential startup partnerships.

Innovation Pipeline Management: Traction Technology aids in managing the innovation pipeline. It helps companies capture ideas and request and track innovation projects, monitor progress, and measure results in real time, promoting a culture of continuous innovation.

Track KPIs and Generate Custom Reports: Effortlessly track Key Performance Indicators (KPIs) with real time dashboards and generate custom reports tailored to your organization's unique requirements. Stay

Harnessing OpenAI: How the 'Build, Buy, Partner' Dilemma is Evolving in the Enterprise

ahead of the curve by monitoring projects progress and engagement.

By leveraging a platform like Traction Technology, established companies can gain a competitive edge, driving their digital transformation journey and adapting to the fast-paced business environment. It supports the integration of startup agility, innovation, and customer-centric approach into their operations, which is critical for success in the digital age.

About Traction Technology 

We built Traction Technology to meet the needs of the most demanding customers, empowering individuals and teams to accelerate and help automate the discovery and evaluation of emerging technologies. Traction Technology speeds up the time to innovation at large enterprises, saving valuable time and money by accelerating revenue-producing digital transformation projects and reducing the strain on internal resources, while significantly mitigating the risk inherent in working with early-stage technologies.

Let us share some case studies and see if there is a fit based on your needs.

‍Traction Report Update: 23 ways AI could  transform your business in 2023. 

For more information

●     Explore our software and research services.

●     Download our brochure: How to Evaluate Enterprise Startups.

●   Watch a demo of our innovation management platform and start your free trial.

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