The U.S. Federal Trade Commission is signaling a potential crackdown on a fast-growing hiring strategy used by major technology companies, warning that so-called “acqui-hires” may be deployed to sidestep antitrust scrutiny in the race to dominate artificial intelligence.
FTC Chairman Andrew Ferguson said the agency is actively examining whether large technology firms are recruiting entire startup teams without formally acquiring the companies in order to avoid merger reviews that would otherwise trigger regulatory oversight.
“We are beginning to examine these acqui-hires to make sure they are not an attempt to get around” the FTC’s merger review process, Ferguson said during an appearance on Bloomberg Television.
Unlike traditional mergers or acquisitions, acqui-hires allow dominant companies to absorb talent, intellectual capital, and technical know-how without purchasing equity or triggering reporting thresholds under U.S. antitrust law. Regulators now fear the practice may be eroding competition in emerging AI markets before it can take root.
Ferguson suggested the strategy has accelerated as enforcement has intensified in Washington, with companies adapting to a tougher regulatory environment by restructuring how they expand.
According to the FTC, the concern is not isolated hiring decisions, but systematic patterns that could deprive markets of independent competitors by stripping startups of the engineers and founders needed to survive.
Recent high-profile arrangements illustrate the trend. Nvidia entered a licensing deal with AI chip startup Groq that coincided with the hiring of Groq founder Jonathan Ross as Nvidia’s chief software architect. Google secured licenses to technology from AI coding startup Windsurf while bringing on its chief executive and select staff without acquiring the company. Meta Platforms took a minority stake in Scale AI while appointing its CEO to a senior leadership role inside Meta’s advanced AI research operations.
While such deals stop short of outright acquisitions, regulators are now questioning whether they produce the same competitive harm.
Antitrust officials have increasingly warned that control over AI talent may be as decisive as control over data or infrastructure. By absorbing startup teams, large firms may be neutralizing future rivals before they reach scale, while preserving the appearance of compliance with merger laws.
The FTC’s review could result in new guidance, enforcement actions, or expanded reporting requirements if the agency concludes acqui-hires are being used as a workaround to existing antitrust safeguards.
As Ferguson emphasized, the review is still in its early stages. However, legal experts say even the public signal from the FTC could reshape how technology companies structure hiring and partnership strategies, particularly in fast-moving AI markets.
The agency’s actions may test whether current antitrust frameworks are equipped to address competition risks that arise not from corporate consolidation on paper, but from the quiet consolidation of talent.
