HALO Deals: A New Acquisition Model in AI

A novel deal structure has emerged in the AI industry: the HALO deal. Unlike traditional acquisitions or simple hiring, HALO deals involve a company hiring a startup's core team while simultaneously licensing its IP. The startup receives significant licensing fees distributed to investors and employees, and continues operating under new leadership. These deals are fast, expensive, and (currently) exclusive to AI. While sparking debate, HALOs attempt to preserve the social contract between founders, investors, and employees, offering a swift, certain way to acquire AI talent in an increasingly scrutinized M&A landscape.