Microsoft is under investigation in the UK for potentially merging with an artificial intelligence (AI) start-up firm, Inflection AI, through the hiring of its key employees. The Competition and Markets Authority (CMA) is looking into whether Microsoft’s acquisition of talent from Inflection AI could lessen competition in the market.
Inflection AI specializes in generative AI, a technology that allows computers to create media such as text and images based on vast libraries of existing data. This technology has attracted significant interest from tech giants like Microsoft, Google, and Meta, who have been making deals with smaller developers to incorporate generative AI into their services.
Microsoft’s hiring of Inflection AI staff, including co-founder Mustafa Suleyman, who now heads its new AI division, has raised concerns about potential anti-competitive behavior. The CMA will determine whether this hiring spree constitutes a merger and if further investigation is warranted.
The CMA’s chief executive, Sarah Cardell, has expressed concerns about big tech companies dominating the AI market and potentially controlling access to AI hardware and products. She emphasized the importance of fair competition and consumer protection to ensure that the benefits of AI innovation are shared widely across society.
The outcome of the CMA’s investigation into Microsoft’s relationship with Inflection AI could have significant implications for the future of AI development and competition in the tech industry. Stay tuned for updates on this developing story.
