Microsoft under investigation in UK for hiring staff from AI startup Inflection
Money | July 16, 2024, 9:14 a.m.
Microsoft's hiring of Mustafa Suleyman, co-founder of Inflection AI UK Ltd., and several former employees has raised concerns from the U.K.'s Competition and Markets Authority. The authority is investigating whether this move constitutes a merger, potentially leading to reduced competition in the AI sector. The CMA will decide by Sept. 11 whether to conduct a Phase 2 probe into Microsoft's hiring practices. In response, Microsoft maintains that hiring top talent promotes competition rather than stifling it. Suleyman's role as the executive vice president and CEO of Microsoft AI underscores the tech giant's focus on artificial intelligence products like Copilot. As the controversy unfolds, it will be crucial to see how this high-profile hire impacts both companies' positions in the rapidly evolving AI landscape.