Silicon Valley buyout strategy is expanding onto Wall Street

Venture capital firms are using a new approach in artificial intelligence: buying established companies and rebuilding them around AI from within, rather than only selling AI tools to them. The shift is gaining traction on Wall Street as some venturebacked firms push into takeprivate deals. The article points to recent transactions involving Janus Henderson and American Express Global Business Travel, as well as the role of firms such as General Catalyst, Thrive Capital, Lightspeed, and Andreessen Horowitz. These investors are targeting industries where software adoption has lagged, including healthcare, accounting, insurance, and property management. The strategy differs from traditional private equity, which has often focused on financial engineering. Here, the emphasis is on using AI to improve operations, scale service teams, and support longterm growth. The piece also notes that execution and returns remain open questions as these firms move from startup investing into operating businesses.