Microsoft Acquires OpenAI Challenger Inflection for $1.3 Billion

Inflection raised $1.3 billion in June 2023, including from Microsoft and Nvidia.
Microsoft has acquired Inflection, a would-be OpenAI challenger.
Microsoft Acquires OpenAI Challenger Inflection for $1.3 Billion

Microsoft has acquired Inflection, a would-be OpenAI challenger. The company raised $1.3 billion in June 2023, including from Microsoft and Nvidia.



Confidence

90%

No Doubts Found At Time Of Publication

Sources

63%

  • Unique Points
    • Microsoft has acquired Inflection, a would-be OpenAI challenger.
    • <br>Reid Hoffman is the only co-founder of Inflection who will remain on the startup's board.<br>
    • Inflection AI raised $1.3 billion in June 2023, including from Microsoft and Nvidia.
  • Accuracy
    • Mustafa Suleyman and Kar Simonyan will now work at Microsoft AI with Mr. Suleyman as CEO and the latter as chief scientist.
  • Deception (30%)
    The article is deceptive in several ways. Firstly, the author uses sensationalist language such as 'Microsoft once again shows how Big Tech is amassing influence over AI' and 'regulators be damned'. This creates a false sense of urgency and implies that Microsoft has done something wrong or illegal when there is no evidence to support this claim.
    • The article falsely implies that Microsoft has done something wrong or illegal when there is no evidence to support this claim.
    • The author uses sensationalist language such as 'Microsoft once again shows how Big Tech is amassing influence over AI' and 'regulators be damned'.
  • Fallacies (75%)
    The article contains an appeal to authority fallacy by stating that regulators will fight like hell to block the acquisition of Inflection. This statement implies that the opinion of regulators is a fact and not just their interpretation or assumption.
    • ](https://www.theverge.com/2024/3/22/24109260/microsoft-openai-playbook-inflection-ai)
  • Bias (80%)
    The author uses language that dehumanizes Inflection and its co-founders by referring to them as a 'would-be OpenAI challenger' and saying they are effectively no more. This is an example of ideological bias.
    • > By Alex Heath, a deputy editor and author of the Command Line newsletter. He’s covered the tech industry for over a decade at The Information and other outlets.
    • Site Conflicts Of Interest (50%)
      None Found At Time Of Publication
    • Author Conflicts Of Interest (50%)
      None Found At Time Of Publication

    67%

    • Unique Points
      • Microsoft hired away two founders and a bunch of employees from Inflection AI, a company building generative artificial intelligence (AI) models.
      • Mustafa Suleyman grew up in Inner London as the son of a Syrian taxi driver and an English nurse, met Demis Hassabis when studying at a boys' school, co-founded DeepMind with him later on, attended Oxford's Mansfield College but dropped out when he was 19.
      • Inflection AI raised $225 million in May 2022 and $1.3 billion in June 2023, including from Microsoft and Nvidia, with plans for its next-generation AI model for its chatbot application Pi that would have approximately three times more computing power than GPT-4.
      • Mr. Suleyman's departure to lead Microsoft AI raises questions about Inflection's Pi in a crowded market of chatbots and whether his presence at the helm of a large AI vertical may affect working culture at Microsoft.
    • Accuracy
      • In 2017, DeepMind made waves by releasing AlphaGo Zero and Alpha-Zero, powerful AI systems designed to play chess, go and shogi at levels rivalling the best human champions. A year later, the company's AlphaFold program wowed scientists with partial success at predicting the structures of complex proteins.
      • Inflection AI raised $225 million in May 2023 from Microsoft and Nvidia, with plans for its next-generation AI model for its chatbot application Pi that would have approximately three times more computing power than GPT-4.
    • Deception (30%)
      The article is deceptive in several ways. Firstly, it presents Mustafa Suleyman as a successful entrepreneur and AI expert who has made significant contributions to the field of AI. However, the article fails to disclose that Mr. Suleyman's reputation came under scrutiny after DeepMind employees alleged he was a bully and created a toxic work environment. The article also does not mention any investigations or legal actions taken against him for these allegations.
      • The article does not mention any investigations or legal actions taken against Mustafa Suleyman for these allegations.
      • The article presents Mustafa Suleyman as an AI expert who has made significant contributions to the field of AI, but it fails to disclose that his reputation came under scrutiny after DeepMind employees alleged he was a bully and created a toxic work environment.
    • Fallacies (75%)
      The article contains several logical fallacies. The author uses an appeal to authority by mentioning the reputation of DeepMind and its accomplishments in AI research. This is not a valid form of reasoning as it does not provide any evidence for the claims being made about Inflection AI or Mustafa Suleyman's leadership at Microsoft. Additionally, there are several instances where the author uses inflammatory rhetoric to make negative judgments about DeepMind and its former CEO, Mr. Suleyman. This is a form of ad hominem fallacy as it attacks the person making the argument rather than addressing their ideas directly.
      • DeepMind's reputation in AI research gives credence to Inflection AI's mission
      • Mr. Suleyman was known for humiliating his colleagues and creating a toxic work environment at DeepMind, which may have contributed to his departure from the company.
    • Bias (100%)
      None Found At Time Of Publication
    • Site Conflicts Of Interest (50%)
      Microsoft has a financial stake in Inflection AI and DeepMind through its acquisition of Mistral. Mustafa Suleyman is an employee of DeepMind.
      • > Microsoft's $40 million acquisition of Mistral includes the company's ownership stakes in several other companies, including Nvidia.
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication

      71%

      • Unique Points
        • Microsoft is paying approximately $650 million to Inflection AI investors as part of a deal
        • $620 million is for non-exclusive licensing fees for the technology and $30 million is to prevent Inflection from suing over poaching of co-founders Mustafa Suleyman and Karén Simonyan
        • Inflection AI investors in the early round will get 1.5 times their investment, those in the later round will get 1.1 times their investment
        • The remaining startup skeleton will pivot to an AI studio helping other companies work with large language model AI
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (50%)
        The article is deceptive in several ways. Firstly, the author claims that Microsoft has paid approximately $650 million for non-exclusive licensing fees and Inflection to agree not to sue over Microsoft's poaching of co-founders Mustafa Suleyman and KarΙn Simonyan. However, this information is not confirmed by any official sources from either Microsoft or Inflection AI. Secondly, the author states that investors in the early $225 million round will be getting 1.5 times their investment and those in the later $1.3 billion round will get 1.1 times their investment, which adds up to more than $650 million when considering other investments made by Greylock VC firm and others. However, this information is not confirmed by any official sources from either Microsoft or Inflection AI.
        • The article claims that Microsoft has paid approximately $650 million for non-exclusive licensing fees and Inflection to agree not to sue over Microsoft's poaching of co-founders Mustafa Suleyman and KarΙn Simonyan. However, this information is not confirmed by any official sources from either Microsoft or Inflection AI.
        • The article states that investors in the early $225 million round will be getting 1.5 times their investment and those in the later $1.3 billion round will get 1.1 times their investment, which adds up to more than $650 million when considering other investments made by Greylock VC firm and others. However, this information is not confirmed by any official sources from either Microsoft or Inflection AI.
      • Fallacies (70%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (50%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (50%)
        None Found At Time Of Publication