Microsoft Acquires Inflection AI for $650 Million, Bolstering AI Capabilities

The deal includes hiring top talents and licensing technology, offering strategic gains amid regulatory scrutiny.

Microsoft has agreed to pay AI startup Inflection about $650 million in a deal allowing Microsoft to use Inflection's AI models and hire most of its staff, including co-founders.
The deal includes non-exclusive licensing fees and an agreement not to sue over Microsoft’s hiring of Inflection's team.
Investors in Inflection, including Microsoft co-founder Bill Gates and VC firm Greylock, will receive returns on their investments.
The acquisition is seen as a strategic move for Microsoft to bolster its AI capabilities and reduce reliance on OpenAI amid regulatory scrutiny.
The transaction could draw more regulatory attention to Microsoft, already under investigation for its investments in AI startups.