UK gives green light to Microsoft partnership with Inflection AI

Britain’s competition regulator on Wednesday cleared Microsoft’s hiring of some former Inflection AI employees and its partnership with the startup, saying the deal did not require further investigation.

The Competition and Markets Authority launched an investigation in July to examine whether the deal could raise competition concerns in the country, as both companies develop and supply chatbots for consumers.

The CMA said that even before it was bought, Inflection had a small share of UK traffic for chatbots and AI tools and, unlike its rivals, was unable to significantly grow or maintain its chatbot users.

In March, Microsoft hired Google DeepMind co-founder Mustafa Suleyman as head of its newly created artificial intelligence unit. It also hired several employees from Inflection, which it created in 2022.

Reuters reported that Microsoft had agreed to pay around $650 million as part of the deal, which gave it access to Inflection’s AI models and allowed the startup to repay its investors, which include former Bill Gates and ex-Google CEO Eric Schmidt.

Read also: Nvidia mulls joining OpenAI’s latest funding round

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