Thomson Reuters has signed a deal to acquire Casetext, an AI-powered legal startup, for $650M in cash.

 

Thomson Reuters has signed a deal to acquire Casetext, an AI-powered legal startup, for $650M in cash.  Casetext's flagship product, CoCounsel, is an AI legal assistant powered by GPT-4. Casetext, founded in 2013, uses AI and machine learning to develop automated workflows and tools for lawyers. Its CoCounsel product can review documents, prepare depositions, analyze contracts, and aid legal research. The California-based company benefitted from early access to OpenAI's GPT-4 language model. Thomson Reuters CEO Steve Hasker described the acquisition as a step in the media company's "build, partner, and buy" strategy to bring generative AI to its customers. The deal is slated to close in the second half of this year. CFO Michael Eastwood recently revealed the company's plan to spend ~$100M annually on AI investments.