Britain’s Competition and Markets Authority (CMA) has initiated a formal investigation into Microsoft’s hiring of former Inflection AI staff and its partnership with the startup, amid growing scrutiny of potentially anti-competitive practices in the AI industry.
The probe follows Microsoft’s acquisition of AI talent, including Mustafa Suleyman, co-founder of Google DeepMind, and several employees from Inflection AI, which was founded in 2022.
The deal, reportedly worth $650 million, granted Microsoft access to Inflection’s AI models and enabled the startup to reimburse investors, including Eric Schmidt and Bill Gates.
Microsoft maintained that the hiring of talent promotes competition and should not be treated as a merger.
The company has pledged to cooperate with the CMA, providing necessary information to expedite the inquiry.
The CMA has until September 11 to decide whether to refer the deal for a more in-depth investigation.
This move came as Microsoft faced scrutiny over its partnerships with leading AI startups, including OpenAI and Mistral AI.
The company recently relinquished its board observer seat at OpenAI to alleviate US and British antitrust regulators’ concerns.
The CMA is also seeking input on partnerships between Amazon and Anthropic, signaling a heightened focus on AI industry practices.
Boluwatife Enome
Source: Reuters
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