UK Clears Microsoft-Inflection AI $650M Deal
UK Clears Microsoft-Inflection AI $650M Deal
UK Clears Microsoft-Inflection AI $650M Deal
News summary

The UK's Competition and Markets Authority (CMA) has cleared Microsoft's hiring of employees from Inflection AI and their partnership, concluding that it does not pose a threat to market competition. The CMA's investigation, launched in July, determined that the deal does not necessitate a deeper probe, although it does qualify as a 'relevant merger situation.' This decision is a significant win for Microsoft amid ongoing regulatory scrutiny in both the UK and the US. Microsoft had previously hired Mustafa Suleyman, co-founder of Inflection AI, along with most of the startup's workforce as part of a $650 million licensing agreement. The CMA also cleared Microsoft's partnership with Mistral AI earlier this year, indicating a trend of major tech companies investing heavily in AI startups. Despite the clearance, the CMA cautioned that similar deals in the future might still be scrutinized for competition concerns.

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