Microsoft faces UK antitrust investigation over hiring of Inflection AI employees.
UK authorities have initiated a formal probe into Microsoft’s recruitment of Inflection AI employees, following the migration of most Inflection staff to Microsoft’s latest AI division several months ago. The Competition and Markets Authority (CMA) in the UK has launched a phase one examination into the collaboration, setting a deadline of September 11th to determine whether the inquiry will advance to a second phase.
Should the investigation progress to the second phase, it may pose a challenge to Microsoft’s AI aspirations. Earlier, the CMA undertook a comprehensive assessment of Microsoft’s $68 billion acquisition of Activision Blizzard in 2022, which led to significant modifications in the deal, including relinquishing crucial cloud gaming rights in various global markets, including the UK. While it is still in the nascent stages, the outcome of the CMA’s scrutiny into Inflection AI could resonate well beyond the borders of the UK.
Among the key figures recruited from Inflection AI is Mustafa Suleyman, co-founder of Google DeepMind, who now serves as the CEO of Microsoft AI. Suleyman departed Google in 2022 to establish Inflection AI before joining Microsoft.
Regulatory bodies in the UK and the EU have been increasingly monitoring the AI collaborations and investments undertaken by major tech companies. The CMA also expressed interest in Microsoft’s Mistral AI partnership; however, it determined that it did not meet the criteria for investigation under its merger regulations.
