A&O Shearman leads on M&A and corporate technology transactions amid regulatory transformation

Given the current slate of ambitious federal and state initiatives including the National AI Research Resource Pilot (NAIRR Pilot), the AI Talent Surge and EducateAI, regulators are working closely with industry to balance innovation with public and worker protections. California continues to set a high bar for responsible AI development while New York leverages its robust framework for AI innovation.

Navigating a shifting regulatory landscape

Daren Orzechowski, technology sector co-head at A&O Shearman, commented: “As the U.S. and global regulatory landscape for data centers, intellectual property, and technology transactions continues to unfold, global businesses face a complex web of federal and state-level laws. Implementing a robust risk management program is essential to ensure compliance and proactively address emerging legal issues. It is also necessary to facilitate all kinds of technology focused transactions.”

Daniel Mitz, technology sector co-head, added: “We’re seeing a surge in M&A activity as companies race to acquire cutting-edge AI capabilities to stay ahead of the competition. Nonetheless, acquiring AI businesses is introducing novel complexities—ranging from intellectual property to data privacy—that require a very different approach to dealmaking.”

Recent high-profile transactions

A&O Shearman’s M&A and Technology teams have advised clients on a wide array of transactions in 2025, including a variety of strategic licensing transactions for emerging AI-focused companies and the following corporate matters:

• Sanmina Corporation in its USD3 billion agreement to acquire ZT Systems’ data center infrastructure manufacturing business from AMD.
• DoorDash in its USD1.2bn acquisition of SevenRooms, Inc., expanding its global footprint following its EUR7 billion acquisition of Wolt.
• VinAI in the sale of its generative AI business to Qualcomm Technologies.
• STMicroelectronics in its USD950 million agreement to acquire NXP Semiconductors’ MEMS (micro-electro-mechanical system) sensors business.
• Qatar Investment Authority (QIA) and its affiliated entities in several minority equity investments in the life sciences and technology (including AI and quantum computing) sectors.
• Runna, the producer of an AI driven running training app, in its acquisition by Strava.
• Coherent Corrp. in the USD400m sale of its aerospace and defense business to Advent International, L.P.
• Trident Digital Group in its merger and Series A financing.

What’s next

While the federal government has largely taken a conservative approach to new AI-specific laws, state governments have been far more proactive. Over the next 12 months, further AI-related regulatory developments are likely at both federal and state level, heightening the need to remain well-informed to changes in laws and policies.

A&O Shearman is at the forefront of technology transactions, guiding clients through a rapidly evolving regulatory environment, both in the United States and abroad, with a focus on AI, privacy, and cybersecurity. The firm’s experience spans high-value, cross-border deals and cutting-edge legal issues, positioning clients to seize new opportunities while managing risk. With California and New York leading in AI regulation and innovation, A&O Shearman’s teams are uniquely equipped to help clients navigate today’s technology landscape.

A few years ago, the firm committed to making its Silicon Valley offering the center of excellence for its entire global network. The team’s work highlights how the firm is successfully achieving its technology sector goals with its Silicon Valley team leading the way.