Microsoft Corporation (MSFT: NSD) struck a unique $650 million deal with Inflection AI, an artificial intelligence startup, according to Bloomberg. The deal focuses heavily on acquiring talent, with Microsoft licensing Inflection’s AI models for $620 million and recruiting a significant portion of the startup’s workforce.
Microsoft Forms New AI Division Led by Inflection Co-Founders:
This talent acquisition is a key aspect of the deal. Microsoft has hired Inflection’s co-founders, Mustafa Suleyman and Karen Simonyan, to lead a newly formed division within Microsoft AI. This division will focus on developing Microsoft’s AI offerings, including advancements in Copilot, their AI tool, and other consumer-centric AI products. The deal has left Inflection’s future unclear. While Microsoft has acquired the talent and technology, there’s no mention of acquiring the entire company.
Conclusion:
This deal highlights a growing trend in the tech industry: prioritizing talent acquisition to gain a competitive edge. By securing the expertise of Inflection’s team, Microsoft strengthens its position in the rapidly developing field of AI.
