In March, Microsoft announced the creation of a new division dedicated exclusively to its AI services, appointing Mustafa Suleyman as the CEO of Microsoft AI. This strategic move also involved acquiring technology from Inflection AI for $650 million. The significant investment has already attracted the attention of regulatory authorities.
FTC investigates Microsoft’s investment in Inflection AI
The Federal Trade Commission (FTC) in the U.S. has launched an investigation to determine if Microsoft’s partnership with Inflection AI violates antitrust laws. The FTC has requested documents from the past two years from both companies to understand the details of their association. This scrutiny follows similar situations where Microsoft had to justify its investments in companies like OpenAI, MistralAI, and others. Microsoft has been proactive in gaining control of AI startups, often ahead of other tech companies.
Although Microsoft hired most of the Inflection AI team, it did not acquire the company outright, possibly as a strategy to avoid a formal investigation. By hiring the company’s staff, Microsoft might bypass some regulatory hurdles while still benefiting from the expertise and technology of Inflection AI.
Under new management, Inflection AI is now focusing on products for enterprise customers, moving away from the consumer market. This shift in direction aligns with Microsoft’s broader strategy in the business sector.
