ITG NowHome › AI glossary › Acquisition
What is an acquisition?
An acquisition is when one company buys another company, or most of it.
- Category Business & money
- Also called acqui-hire
- Updated 20 Oct 2026
Acquisition, explained simply
An acquisition happens when a company buys another company. The buyer then owns it, or controls it.
In AI, big companies often buy small teams with a good tool or skilled people. Buying a team for its skills is sometimes called an acqui-hire.
This matters to you because a tool you use may change after a purchase. It may get new features, new prices, or shut down.
For example, a small free AI app can be bought by a large company. The app might then join that company's products.
On ITG Now, daily AI news stories report AI company deals, so you can see when a tool you like gets a new owner.
Related terms
StartupFunding roundValuationIPOVenture capital
Where you'll see it on ITG Now
Questions people ask about Acquisition
What is an acqui-hire?
It is when a company buys a startup mostly to hire its people. The product may be shut down afterward.
Will a tool I use stay free after an acquisition?
Not always. The new owner may change prices, features or terms, so check the news.
Acquisition vs merger: what is the difference?
In an acquisition, one company buys another. In a merger, two companies join to form one.