Riviera Partners purchases the AI recruitment startup Lateral Labs as the competition for talent transforms executive search.

      Riviera Partners is set to acquire Lateral Labs, an AI recruitment startup established by a former recruiter from OpenAI, in order to enhance its talent search capabilities in AI and machine learning. Riviera Partners, an executive search firm supported by Insight Partners, has successfully placed technology leaders at prominent companies such as Uber, Snowflake, Figma, and Discord. This acquisition will integrate Lateral Labs’ client base, which features companies like Cursor, ElevenLabs, Runway, Scale AI, and Luma Labs, into one of the largest tech-focused recruitment firms in the sector.

      Founded in 2024 by Rob Infantino, a former recruiter at OpenAI and Amazon Web Services, Lateral Labs specializes in embedded, retained, and contingent searches for machine learning and AI research positions, catering to the specific technical needs of AI organizations. The financial details of the acquisition remain undisclosed.

      This acquisition fits into a larger trend within the executive search industry. Founded in 2002, Riviera has executed thousands of leadership placements over the last twenty years and has been actively acquiring other firms, including Build Talent, Board and Technology, and Arete Partners, to broaden its reach within venture and private equity-backed companies.

      Kyle Langworthy, a Riviera executive, remarked on the announcement that only about two percent of companies are adequately prepared for AI implementation, which is notably lower than other industry estimates suggesting that around a third of organizations are fully ready for AI, as indicated by workforce surveys. Data from ManpowerGroup in 2026 revealed that 72 percent of global employers are facing challenges in filling open positions, with AI and machine learning roles being particularly affected.

      Infantino pointed out that Lateral Labs was created to assist AI companies in their hiring processes, from their initial technical hire up to IPO. The firm's client portfolio highlights the increasingly competitive nature of the AI talent market.

      Earlier this year, Cursor, the AI coding tool, was reportedly in discussions to secure two billion dollars at a valuation exceeding 50 billion dollars, while ElevenLabs raised 500 million dollars at an 11 billion dollar valuation in February. These firms are among those aggressively vying for AI researchers, and Lateral Labs has been successful in placing candidates with them.

      The acquisition illustrates how the competition for AI talent has evolved into a broader infrastructure-level contest. For instance, Meta reportedly spent one and a half billion dollars on a single engineer from Thinking Machines Lab, and OpenAI acknowledged offering signing bonuses of up to 100 million dollars. This situation has made it clear to recruitment firms that companies investing heavily in talent need improved pathways to identify suitable candidates.

      Riviera’s own findings support this notion. Their AI Hiring Blueprint 2026 report, which analyzes hundreds of executive searches, indicates that organizations are seeking AI leaders who can navigate product, finance, and operations while effectively communicating with boards and building enduring teams. However, candidates possessing this skill set remain limited.

      The acquisition also positions Riviera to compete more directly with a new generation of AI-focused recruitment startups. For instance, Dex, a London-based AI talent agency with ElevenLabs as a client, recently secured a five million dollar seed funding round and utilizes conversational AI to create detailed candidate profiles instead of traditional search methods.

      Riviera is banking on the belief that the traditional recruitment model can still be effective if executed swiftly. The firm employs a proprietary platform utilizing machine learning to assess and predict candidate suitability, while its primary business continues to be relationship-driven executive search. By acquiring Lateral Labs, Riviera gains direct access to the AI startup ecosystem, where many competitive hires are occurring.

      It remains uncertain whether established search firms or AI-native recruitment platforms will dominate the AI talent market. However, the demand is undeniable, with approximately 1,600,000 AI job openings worldwide against only 518,000 qualified candidates, as reported in Second Talent’s 2026 analysis.

      By the year's end, over 90 percent of global enterprises are anticipated to experience significant skills shortages. For Riviera, acquiring Lateral Labs represents a strategic move that emphasizes the need for firms placing AI leaders to specialize, consolidate, and advance at the pace of the companies they support.