Microsoft to Pay Inflection AI $650 Million After Scooping Up Most of Staff

Microsoft Corp. has agreed to pay Inflection AI $650 million, largely to license its artificial intelligence software, alongside its move earlier this week to hire much of the startup’s staff, according to a person familiar with the transaction.

Microsoft stunned the AI world on Tuesday with an announcement that it had hired Inflection’s co-founders Mustafa Suleyman and Karén Simonyan, along with most of the startup’s 70 employees. The unusual deal, first reported by Bloomberg News, resembled an “acqui-hire” — but without an acquisition. Some legal and industry experts have suggested that Microsoft’s Inflection deal might still spark antitrust concerns with US regulators, who are increasingly scrutinizing Big Tech’s AI investments and partnerships.