Summary:
The UK Competition and Markets Authority (CMA) is investigating Microsoft's partnership with AI startup Inflection.
The deal involved hiring Inflection founder Mustafa Suleyman and colleagues to lead Microsoft's new AI division, along with access to Inflection's AI models.
Regulators believe this strategy avoids scrutiny under merger rules.
The CMA's investigation is ongoing, with a decision due by September 11th.
This comes amid broader concerns about competition in the AI sector, with other deals involving Amazon, Anthropic, and OpenAI also under investigation.
Microsoft argues that hiring talent promotes competition, while Inflection is focused on implementing its new strategy and cooperating with authorities.
UK Regulator Probes Microsoft's AI Deal: Is It a Merger in Disguise?
The UK Competition and Markets Authority (CMA) is investigating Microsoft's partnership with AI startup Inflection, raising concerns about potential anti-competitive practices in the rapidly growing AI sector.
The deal involved Microsoft hiring Inflection founder Mustafa Suleyman and several colleagues to lead its new AI division, along with agreements for access to Inflection's AI models. Regulators see this as a strategy to avoid scrutiny under merger rules.
The CMA's investigation is ongoing, with a decision on whether to progress to the next stage due by September 11th. This comes amid broader concerns about competition in the AI sector, with several other deals involving major tech players like Amazon, Anthropic, and OpenAI also under investigation.
Microsoft argues that the hiring of talent promotes competition, while Inflection is focused on implementing its new strategy and cooperating with authorities.
This investigation highlights the growing scrutiny of tech giants' acquisitions and partnerships in the AI space, raising questions about the potential for monopoly formation and stifled innovation.
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