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U.K Antitrust Probe into Microsoft’s Partnership with Inflection AI

U.K. antitrust officials are currently investigating whether Microsoft’s partnership with Inflection AI and the recent hiring of former employees could potentially harm competition within the tech industry. This probe is the latest in a series of inquiries examining the tech giant’s connections with artificial intelligence startups.

The investigation stems from Microsoft’s acquisition of Inflection AI’s co-founder and the majority of its workforce, along with a substantial payment of $650 million to license and distribute the startup’s technology. The Competition and Markets Authority is evaluating whether the close relationship between Microsoft and Inflection AI should be categorized as a de facto merger, raising concerns about potential anti-competitive practices in the U.K. A preliminary decision is expected by Sept. 11.

In response to the probe, a spokesperson for Microsoft asserted that the hiring of talent is beneficial for fostering competition and should not be interpreted as a merger. The company will cooperate with the U.K. Competition and Markets Authority to facilitate a swift resolution to their inquiries.

Additionally, the Federal Trade Commission in the U.S. has initiated its own investigation into Microsoft’s dealings with Inflection AI, exploring whether the agreement was structured in a way to bypass government antitrust scrutiny.

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