Microsoft Scores Major Deal with Inflection AI, Bolstering Its AI Arsenal

March 22, 2024 – In a recent development that has shaken the tech world, Microsoft has announced a blockbuster deal with the upstart artificial intelligence company Inflection AI. According to insiders, the software giant has agreed to shell out a staggering $6.5 billion in cash to secure a license for Inflection’s cutting-edge AI software.

The deal, however, extends beyond just a financial transaction. Microsoft has also announced the hiring of Inflection’s co-founders, Mustafa Suleyman and Karén Simonyan, along with a significant chunk of the company’s workforce. This move is being widely interpreted as an unorthodox “talent acquisition” strategy, allowing Microsoft to sidestep potential antitrust scrutiny.

The financial breakdown of the deal reveals that Microsoft has paid 6.2billionforaccessingInflectionAI′smodels,withanadditional30 million being allocated to fend off any potential legal wrangles associated with the mass hiring.

Inflection AI, which had garnered a valuation of 40billionafterraising1.3 billion in funding last June, has effectively been “swallowed” by Microsoft at a relatively low cost. This strategic move allows the tech giant to seamlessly integrate Inflection’s talented personnel and advanced technologies into its own ranks.

Notably, Inflection AI retains ownership of its proprietary technology, and the transaction is expected to fully repay the startup’s investors. This development marks a significant milestone in the evolving landscape of artificial intelligence, with Microsoft emerging as a formidable force in the race to dominate this burgeoning field.

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