Microsoft has recently made a significant move in the AI market by striking an unusual deal with Inflection valued at $650 million. This deal involves gaining access to Inflection’s cutting-edge AI technology and acquiring a considerable portion of its workforce.
As part of the agreement, Inflection’s advanced AI models will be integrated into Microsoft’s Azure cloud service, enhancing the AI functionalities available for Microsoft’s consumer products. The majority of the $650 million deal will be utilized for licensing this valuable technology.
In addition to the technology acquisition, Microsoft is forming a new consumer AI unit that will be headed by Inflection’s co-founders, Mustafa Suleyman and Karen Simonyan. A significant number of Inflection’s team members will also be joining Microsoft as part of this transition.
Meanwhile, Inflection has disclosed its strategic shift towards catering to enterprise customers, focusing on selling its AI models as business solutions rather than developing direct consumer products like Pi.
However, this high-profile agreement has raised concerns about potential regulatory scrutiny. With Microsoft already under FTC investigation for its AI investments, experts warn that the acquisition of Inflection could attract further attention from regulatory bodies due to possible implications on competition within the AI market.
