The global AI economy has triggered an unprecedented dealmaking surge, with $3.2 trillion in global deals completed through June 2026, representing a 45% jump from the previous year according to Dealogic. This marks the most spent on deal-making over a six-month period in at least a decade, driven by an ebullient stock market, huge AI bets, and open regulatory environment. The frenzy heavily favored large companies, with 44 deals announced that were larger than $10 billion, including major acquisitions like NextEra's $118 billion deal for Dominion Energy and SpaceX's $60 billion acquisition of Cursor. However, questions persist about whether this unprecedented spending can continue amid top-quartile uncertainty and volatility.
According to reports from Business Standard, Rothschild & Co advised on approximately $5 billion worth of transactions in India during 2025, marking a significant increase from previous years. The investment bank has moved beyond its traditional mid-market focus, now advising on larger deals including the $3 billion JB Chemicals & Pharmaceuticals transaction and the $1.4 billion Hindustan Coca-Cola Beverages deal. As reported by Business Standard, the firm's focus has expanded from mid-market deals valued at $100-500 million to include billion-dollar-plus transactions.
As reported by Business Standard, artificial intelligence has created both positive and negative impacts on technology deal-making in India. On the negative side, AI disruption has slowed M&A activity in the lower-end technology services segment, with private equity sponsors finding difficulty in underwriting long-term AI impact on these businesses. Strategic buyers like Persistent Systems, Coforge, and Wipro continue making acquisitions, but with more targeted focus on specific geographies, customer relationships, or capabilities rather than scale-driven purchases. The current global surge reflects companies' need to transform their businesses through big mergers rather than smaller acquisitions, as they aim to keep pace in an economy dominated by only a handful of giant corporations.
According to Business Standard reports, Indian companies are primarily focusing on AI infrastructure development and services, building data centres and compute capacity, as well as using existing AI models to improve enterprise efficiency. However, valuations in the AI services segment have become quite high, making it difficult for Indian companies to compete with global buyers willing to pay significant premiums for AI businesses. US technology companies trade at higher valuation multiples with substantial cash reserves, enabling them to acquire AI companies at premium valuations. The global AI theme continues to drive IPO activity, with SK Hynix set to raise $28 billion in a US listing this week, following SpaceX's record-breaking $75 billion IPO.
As reported by Business Standard, Rothschild & Co will continue focusing on three key areas in technology: large M&A transactions valued at $500 million and above, private capital raises in the $100-300 million range for fast-growing Indian companies, and new-age technology companies requiring $50-100 million funding. The firm expects the profile of buyers to evolve with more strategic buyers from the Far East and Europe becoming active in India, while maintaining a focused coverage model to track potential acquisition targets over the next two years. Banking revenue has benefited significantly from this dealmaking surge, with Bank of America expecting investment banking revenue up 28% and JPMorgan Chase projecting a 10% increase in the latest quarter.
According to Business Standard, India has become strategically important for Rothschild & Co, with the firm reporting directly to the global CEO rather than through regional headquarters. The bank is increasingly advising global companies on listing their Indian businesses, currently working with Coca-Cola on listing its India business and advising two global automobile companies on listing their Indian subsidiaries. Indian mid-market companies are also becoming increasingly active in overseas acquisitions, with Rothschild advising on multiple international deals including Anupam Rasayan's $150 million US acquisition. However, not every company has joined the AI-driven dealmaking party, with private equity-owned companies making up only 24% of overall deal value this year, down from about 34% in 2024-2025, as many firms grapple with uncertain software company valuations.
