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[Alpha Biz= Reporter Kim Sangjin] Microsoft (MS) Faces Investigation by UK Regulators Over Alleged 'Dodgy Acquisition' of AI Chatbot Development Startup Inflection

The UK Competition and Markets Authority (CMA) announced on the 16th (local time) that it is investigating Microsoft's acquisition of Inflection, a startup specializing in artificial intelligence (AI) chatbot development. According to UK regulations, the investigation focuses on Microsoft's hiring of co-founder and employees from Inflection.

In March, Microsoft hired Mustafa Suleyman, co-founder of AI company DeepMind, as its Chief AI Officer. Suleyman, along with the majority of Inflection's 70 employees, joined Microsoft. However, allegations have arisen that Microsoft's hiring of Suleyman and the employees may constitute a 'dodgy acquisition' aimed at circumventing antitrust scrutiny in the AI sector.

CMA plans to scrutinize whether Microsoft's hiring of Inflection's co-founder and employees could undermine competition in the AI sector through an acquisition. The investigation will commence with an initial phase, with the possibility of advancing to a more detailed second phase if further investigation is deemed necessary. CMA aims to announce whether a full investigation will proceed by September 11th

 

 

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