Microsoft Faces Investigation Over Hiring of Inflection AI Employees

Microsoft’s recent recruitment of key employees from the artificial intelligence (AI) start-up, Inflection, has come under scrutiny by British authorities. The UK’s Competition and Markets Authority announced on Tuesday that they are launching an initial investigation into the hirings. The focus of the investigation is to determine if Microsoft’s hiring spree, which includes Inflection AI’s co-founder and CEO, Mustafa Suleyman, may potentially hinder competition in the rapidly growing AI market.

Mustafa Suleyman, a prominent figure in the AI industry who co-founded DeepMind before moving on to establish Inflection AI, was appointed by Microsoft earlier this year to lead its consumer AI division. Along with Suleyman, Microsoft also recruited several top engineers and researchers from Inflection AI.

The Competition and Markets Authority is evaluating whether these hirings could be seen as a form of merger that might lead to a significant reduction in competition within the UK’s AI sector, thereby violating the country’s antitrust regulations.

Regulatory Concerns and Industry Trends

In response to the investigation, Microsoft stated that they believe hiring talent contributes to healthy competition and should not be construed as a merger. They have assured their cooperation with the UK Competition and Markets Authority to facilitate a swift resolution to the inquiries.

The regulatory scrutiny over the acquisition of talent from AI start-ups reflects a broader concern shared on both sides of the Atlantic. Authorities are increasingly wary of major tech companies absorbing the expertise and technologies of innovative AI ventures without formal acquisitions.

Recently, three US Senators urged antitrust regulators to probe Amazon’s agreement with San Francisco-based Adept, where key Adept personnel are set to join Amazon, granting the e-commerce giant access to Adept’s AI systems and datasets.