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Microsoft’s recent $650 million acquisition of AI talent, including Mustafa Suleyman, has sparked a formal investigation by Britain’s Competition and Markets Authority (CMA). This move comes amid increasing scrutiny over potential anti-competitive practices within the AI industry.
The investigation focuses on Microsoft’s hiring of former Inflection AI staff and its partnership with the startup. Inflection AI, founded in 2022, includes Suleyman, a co-founder of Google DeepMind, and several other employees who have now joined Microsoft. This deal provided Microsoft with access to Inflection’s AI models and allowed the startup to reimburse its investors, such as Eric Schmidt and Bill Gates.
Microsoft asserts that hiring these talents enhances competition and should not be considered a merger. The company has pledged to cooperate fully with the CMA, providing all necessary information to expedite the inquiry.
The CMA has until September 11 to determine whether to proceed with a more in-depth investigation. This probe occurs as Microsoft faces scrutiny over its relationships with other leading AI startups, including OpenAI and Mistral AI. To address concerns from US and British antitrust regulators, Microsoft recently relinquished its board observer seat at OpenAI.
Additionally, the CMA is gathering input on partnerships between Amazon and Anthropic, indicating a broader focus on AI industry practices.
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