HomeWinBuzzer NewsMicrosoft Acquires Inflection Team amid AI Talent Race, Faces European Probe

Microsoft Acquires Inflection Team amid AI Talent Race, Faces European Probe

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The European Union regulators have taken an interest in Microsoft's acquisition of the team at Inflection, a Palo Alto-based startup, for a reported sum of $650 million. This move has transferred a significant portion of Inflection's team to , granting the tech giant the rights to utilize Inflection's models. This acquisition comes as Microsoft forms a new AI division, led by Inflection's founders, Mustafa Suleyman and Karén Simonyan, highlighting the tech industry's escalating demand for AI talent.

Regulatory Scrutiny

The European Union's competition officials are closely monitoring Microsoft's investments in the AI sector, including a substantial $13 billion investment in OpenAI and a $15 million stake in Mistral. Margrethe Vestager, the European Commission's Executive Vice President and head of the antitrust team, remarked that the transaction between Microsoft and Inflection does not constitute a merger and thus does not fall under the EU's merger regulations. However, she indicated that the EU might investigate if such transactions become a trend that potentially circumvents competition preservation rules.

The AI Talent War Intensifies

The competition for AI talent has become increasingly fierce, with major like and Amazon also making significant investments in the sector. Google has reportedly invested $2 billion in Anthropic, while Amazon has invested $4 billion in the same company, alongside offering incentives to attract AI startups. The industry's focus on AI has intensified following 's demonstration of in November 2022, leading to speculative investments and a potential bubble in AI share prices. Meanwhile, Elon Musk has announced raises for his AI engineering team to prevent defections, underscoring the competitive nature of the AI talent market.

This strategic maneuvering by Microsoft and other tech giants reflects the high stakes in the development and control of AI technologies. As companies vie for the leading edge in AI, regulatory bodies remain vigilant, ready to intervene should these aggressive acquisition strategies threaten competitive balance in the tech industry.

SourceReuters
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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