The UK’s Competition and Markets Authority (CMA) has approved Microsoft’s hiring of nearly all of Inflection AI’s employees, following an investigation launched in July. While the CMA recognized that the move represented a “relevant merger situation,” it concluded that the hire would not harm competition in the UK’s AI sector.
In March, Microsoft announced it had brought on board most of Inflection AI’s team, including two co-founders, Mustafa Suleyman and Karén Simonyan. Along with the workforce, Microsoft also gained a license to Inflection’s intellectual property, giving it access to the startup’s AI models and chatbot development.
Inflection’s main product, a chatbot named Pi, focuses on “emotional intelligence” by offering a “kind and supportive” user experience. Despite this, the CMA determined that the impact on competition would be minimal, citing Inflection’s small market share and lack of standout features compared to competitors.
The investigation follows growing scrutiny over tech giants hiring talent and acquiring intellectual property from innovative AI startups without formal takeovers. In a similar case earlier this year, Amazon hired key employees from San Francisco-based AI startup Adept and obtained a license for its AI systems, sparking calls from U.S. Senators for regulatory review.
