CMA assessing whether hiring constitutes a merger under UK rules and could reduce competition within AI sector
CMA launched phase 1 merger inquiry into Microsoft's acquisition of Inflection staff
Inflection co-founder Mustafa Suleyman and most of its staff hired by Microsoft this year
Inflection focused on developing large language models for various applications, founded by Mustafa Suleyman and Jordan Hoffmann in 2023
Microsoft argues hiring promotes competition, but reports suggest $650 million licensing fees paid to Inflection for AI models via Azure cloud platform not disclosed
Microsoft's new AI division under scrutiny due to acquisition of Activision Blizzard currently under review by UK and EU regulators
Microsoft under investigation by UK regulators for hiring Inflection team
Microsoft, the Redmond-based tech giant, is currently under investigation by the UK's Competition and Markets Authority (CMA) over its hiring of staff from AI startup Inflection. The CMA announced on July 16, 2024, that it would be launching a phase 1 merger inquiry into Microsoft's acquisition of Inflection's team. This investigation comes after Microsoft hired Mustafa Suleyman, Inflection's co-founder, along with most of the startup's staff earlier this year. The CMA is assessing whether this hiring constitutes a merger under UK rules and could result in less competition within the AI sector.
Microsoft argues that the hiring of talent promotes competition and should not be treated as a merger. However, reports suggest that Microsoft paid $650 million in licensing fees to Inflection to resell Inflection's AI models via the Azure cloud platform. The details of this deal were not disclosed by Microsoft.
Inflection was founded by Mustafa Suleyman and Jordan Hoffmann in 2023, and it focused on developing large language models for various applications. Prior to founding Inflection, Suleyman was a co-founder of Google DeepMind. The hiring of such a prominent figure from the AI industry raised eyebrows among regulators.
Microsoft's new AI division has also been in the news recently due to its acquisition of Activision Blizzard. This deal is currently under review by both the UK and EU regulators, and it could present a stumbling block for Microsoft's AI ambitions if it progresses to a second phase investigation.
The CMA's investigation into Microsoft's hiring of Inflection staff is expected to take up to 40 working days. If the case progresses to the phase two stage, it could result in significant consequences for Microsoft and the AI industry as a whole.
'Microsoft's hiring of certain former employees from AI startup Inflection has been referred for an initial merger investigation in the UK.'
'The hiring of Mustafa Suleyman, Inflection's co-founder, along with most of the startup's staff, is to be assessed to decide whether it constitutes a merger under UK rules.'
'Microsoft argues that the hiring of talent promotes competition and should not be treated as a merger.'
'Reports suggest that Microsoft paid $650 million in licensing fees to Inflection to resell Inflection's AI models via the Azure cloud platform, though details were not disclosed by Microsoft.'
UK regulators have formally initiated an investigation into Microsoft’s hiring of Inflection AI staff.
Microsoft hired Google DeepMind co-founder Mustafa Suleyman as part of the Inflection AI staff hirings.
Accuracy
The UK’s Competition and Markets Authority (CMA) is conducting a phase one merger investigation into the partnership with a deadline of September 11th.
Reports suggest that Microsoft paid $650 million in licensing fees to Inflection to resell Inflection’s AI models via the Azure cloud platform.
Microsoft hired Google DeepMind co-founder Mustafa Suleyman as part of the Inflection AI staff hirings.
Accuracy
Microsoft's hiring of certain former employees from AI startup Inflection has been referred for an initial merger investigation in the UK.
The hiring of Mustafa Suleyman, Inflection's co-founder, along with most of the startup's staff, is to be assessed to decide whether it constitutes a merger under UK rules.
Microsoft argues that the hiring of talent promotes competition and should not be treated as a merger.
Microsoft is facing a full regulatory probe in the U.K. after hiring the core team behind Inflection AI.
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Accuracy
The CMA is also currently looking at Amazon’s $4 billion investment in U.S.-based AI company Anthropic and is expected to launch a full probe into Microsoft’s partnership with ChatGPT-maker OpenAI.
Microsoft argues that the hiring of talent promotes competition and should not be treated as a merger.
