Corporate leaders now argue that AI can unlock massive value, but whether that upside lands in public or private hands remains contested. Coinbase founder Brian Armstrong announced a 14% workforce cut to lean into AI, sending the stock down 2%. In contrast, Block, run by Jack Dorsey, saw shares jump 20% after revealing a 40% staff reduction.

Private equity is stepping in to capitalize on automation. Long Lake, backed by General Catalyst, agreed to buy the Global Business Travel Group (GBTG) for $6.3 billion, paying a 65% premium over its post‑IPO price. GBTG’s management has already shifted to AI “agents” to boost margins by up to 2 percentage points, targeting a 70% gross margin by 2026.

Public tech firms face tighter scrutiny: quarterly results must prove AI’s impact, and shareholders weigh job cuts against growth. Private buyers can act more swiftly, but they must justify steep premiums. Long Lake’s deal illustrates that investors are willing to pay for the ability to reengineer legacy businesses, betting that automation will deliver higher profits faster than traditional routes.

GBTG’s projected 2026 revenue of just over $3 billion, up a fifth from 2025, underlines the scale of the bet. If the acquisition succeeds, Long Lake could unlock significant cash flow, demonstrating that private markets can outpace public exchanges in deploying AI for rapid transformation.