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Inflection AI co-founder Mustafa Suleyman joined Microsoft in March as CEO of Microsoft AI and served as theSomeNow, the UK Competition and Markets Authority (CMA) has opened ask Whether this and other transactions between Microsoft and Inflection should be considered anti-competitive.
The CMA has until September 11, 2024 to decide whether to continue the investigation.
Why Microsoft’s hiring from Inflection caught the CMA’s attention
The CMA said the investigation would look at “whether Microsoft’s employment of some former Inflection employees and the relevant agreements with Inflection led or might have led to the creation of a merger.” wrote July 16th.
If that were the case, the merged company would likely “substantially lessen competition in any market or service in the United Kingdom,” the CMA wrote, which falls within the agency’s jurisdiction.
In a statement BBCA Microsoft spokesman said, “We believe that the hiring of talent promotes competition and should not be viewed as a merger.”
See also: Apple iOS 18 public beta – and its AI capabilities – are now available.
CMA continues investigation into ‘interconnected networks’ of AI firms
The investigation highlights the complex web of relationships among AI players. Suleiman previously worked at Google DeepMind before co-founding Inflection with Karen Simonyan. (Simonyan moved on to join Microsoft’s AI division as chief scientist under Suleiman.)
Inflection AI has created a generative AI chatbot called Pi that aims to be a “Kind and supportive partner“It hosts Inflection 2.5, the large language model behind Pi, Microsoft Azure.
In April this year, the CMA turned its attention to Inflection AI, which was mentioned as a “Artificial Intelligence Partnerships and Other Arrangements.” Specifically, the CMA highlighted several relationships between large tech companies and AI startups:
- Microsoft and Mistral AI.
- Amazon and Anthropic.
- Microsoft and Inflection AI.
CMA has Research OpenAI Close relationships between AI industry players “could exacerbate existing market power positions through the underlying model value chain,” CMA says Wrote in AprilThe CMA said in April that the AI industry comprises “an interconnected network of more than 90 partnerships and strategic investments involving the same companies”.
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