Microsoft faces UK antitrust investigation over hiring of Inflection AI staff

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Microsoft faces UK antitrust investigation over hiring of Inflection AI staff
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UK regulators are looking more closely at Microsoft’s AI investments. The hiring of Inflection AI staff earlier this year will be probed under merger rules in the UK.

UK regulators are now formally investigating Microsoft’s hiring of Inflection AI staff, months after most of Inflection’s staff joined Microsoft’s new AI division. The UK’s Competition and Markets Authority is now opening up a phase one merger investigation into the partnership, with a September 11th deadline over whether the investigation will progress into a second phase. If the case progresses to the phase two stage then it could present a stumbling block for Microsoft’s AI ambitions.

Microsoft hired Google DeepMind co-founder Mustafa Suleyman as part of the Inflection AI staff hirings. Suleyman left Google in 2022 to co-found Inflection AI, and he’s now CEO of Microsoft AI. Regulators in the UK and EU have been increasingly looking at the AI partnerships and investments that Big Tech are making. The CMA also signaled interest in Microsoft’s Mistral AI partnership, but decided that it didn’t qualify for investigation under its merger rules.

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