Microsoft Seals the Deal: UK Gives Green Light to Inflection AI Acquisition
Microsoft’s Investment in Inflection AI Gets Green Light from UK Regulator
The UK’s Competition and Markets Authority (CMA) has approved Microsoft’s investment in AI startup Inflection AI, concluding that the deal does not require a deeper antitrust investigation.
Inflection AI, a pioneering AI startup, made headlines in May last year with the launch of its AI robot, Pi. In a significant move, Microsoft agreed to pay $650 million to license Inflection AI’s cutting-edge AI software in March this year. As part of the deal, Microsoft also welcomed Inflection AI co-founders Mustafa Suleyman and Karén Simonyan, along with most of the company’s employees, to its team.
With a valuation of approximately $4 billion, Inflection AI retains its proprietary technology, distinguishing this deal from a traditional acquisition. This strategic partnership is set to drive innovation in the AI landscape.
The UK Competition and Markets Authority had invited interested third parties to comment on the transaction in April, seeking feedback on whether the arrangements between Microsoft and Inflection AI comply with UK merger regulations and their potential impact on market competition.