Microsoft faces UK antitrust probe over Inflection AI deal
What's the story
Microsoft is currently under investigation by the United Kingdom's Competition and Markets Authority (CMA) due to its partnership with Inflection AI. The probe was initiated following Microsoft's hiring of Mustafa Suleyman, the co-founder of Inflection AI, and nearly all employees of the startup earlier this year in March. Additionally, Microsoft agreed to pay approximately $650 million to the AI firm as a licensing fee for reselling its technology.
Merger concerns
CMA considers Microsoft's Inflection AI ties as potential merger
The CMA is currently assessing whether Microsoft's relationship with Inflection AI should be considered a de facto merger. The concern is that this could potentially stifle competition within the UK. An initial decision on this matter by the CMA is expected by September 11. This investigation follows a similar probe conducted by the Federal Trade Commission (FTC) in the United States, examining Microsoft's deal structure with Inflection AI.
Company response
Microsoft responds to UK antitrust probe
In response to the ongoing investigation, a spokesperson for Microsoft stated, "We are confident that the hiring of talent promotes competition and should not be treated as a merger." The tech giant further assured that it will provide the CMA with all necessary information to expedite their enquiries. This statement comes as Microsoft continues to face scrutiny over its relationship with artificial intelligence startups, including Inflection AI and ChatGPT-maker OpenAI.