Inflection AI, a startup specializing in artificial intelligence, has announced plans to pivot its business model after the majority of its employees transitioned to tech giant Microsoft. The move comes as Inflection AI prepares to license its technology to Microsoft, marking a strategic shift towards catering to business clients.
The shift in focus follows the departure of Inflection AI’s CEO, Mustafa Suleyman, and Chief Scientist, Karén Simonyan, along with the majority of the company’s workforce who have joined Microsoft. Despite this significant change, investors in Inflection AI, which has raised over $1.5 billion, are set to be compensated fully, according to a source familiar with the matter.
Among the prominent backers of Inflection AI are Microsoft, Nvidia Corp., Bill Gates, and Reid Hoffman. Notably, Reid Hoffman, a co-founder of the startup and a Microsoft board member, will continue to be involved with Inflection AI as a director.
As part of its new strategy, Inflection AI will retain its proprietary technology as it transitions to an enterprise-focused business model. The company believes its expertise in training and enhancing large AI models positions it well to serve businesses worldwide, including Microsoft.
Sean White, a former chief research and development officer at Mozilla, has been appointed as the new CEO of Inflection AI, taking over the reins as the company embarks on this new chapter. While the specific terms of the deal between Inflection AI and Microsoft have not been disclosed, it is evident that the startup is gearing up to leverage its advanced AI capabilities in the realm of enterprise solutions.
