Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Microsoft’s Inflection deal gets a closer look
The UK’s antitrust regulator is scrutinizing Microsoft’s unique relationship with Inflection AI. The PC giant did what some have called an “acqui-hire” — not buying the company outright, but rather hiring many of its former leaders and employees instead.
Microsoft poached the once-$4 billion startup’s co-founders Mustafa Suleyman and Karén Simonyan as well as “most of its staff.” It paid $650 million to license Inflection’s technology, which is how investors will get their returns. Now, the UK’s Competition and Markets Authority is looking at whether the deal is a “de facto merger,” a decision it’s expected to make by Sept. 11.
Microsoft is already facing scrutiny for its $13 billion investment in OpenAI in the US and UK, choosing to relinquish its non-voting board seat to stave off further criticism last week. We’re watching for how Microsoft fares in court, and whether it changes its tack in competing for the top talent and tech in AI development.