Microsoft to pay Inflection AI as it hires most of its staff and founders

In a blogpost, Inflection indicated its readiness to cater to businesses like Microsoft stating “Our success at training, tailoring and improving the performance of large AI models makes us uniquely well placed to be the AI platform for businesses around the world”.
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Microsoft recently recruited Inflection’s co-founders and the majority of its staff, in a move resembling an “acqui-hire” without an actual acquisition. This arrangement, which has attracted attention in the AI industry, could potentially raise antitrust issues.

Microsoft has committed to a $650 million payment to Inflection AI – $620 million for licensing Inflection’s AI models and an additional $30 million to settle legalities connected to the hiring of Inflection’s employees. Meanwhile, Inflection will continue to retain ownership of its proprietary technology.

In a blogpost, Inflection indicated its readiness to cater to businesses like Microsoft stating “Our success at training, tailoring and improving the performance of large AI models makes us uniquely well placed to be the AI platform for businesses around the world”.