UK Watchdog Probes Microsoft’s Hiring of Inflection AI Staff
The UK’s Competition and Markets Authority (CMA) is investigating Microsoft’s hiring of former Inflection AI employees. This includes Inflection AI’s co-founder and CEO, Mustafa Suleyman. The CMA is concerned that these hires could harm competition in the UK’s artificial intelligence sector.
Potential for Reduced Competition
Mustafa Suleyman is a well-known figure in the AI world. He co-founded DeepMind, an AI research center now owned by Google. He then went on to found Inflection AI. Microsoft has hired Suleyman to lead its consumer AI division. They have also recruited several top engineers and researchers from Inflection AI.
The CMA is looking into whether these hires could stifle competition. They are concerned it could create a situation similar to a merger. This could significantly reduce competition in the UK’s AI industry. Such a scenario could violate the UK’s antitrust laws.
Microsoft argues that hiring talented people is good for competition. They say it shouldn’t be seen as the same as a merger. The company has pledged to fully cooperate with the CMA’s investigation.
The CMA has until September 11 to make a decision. They can either clear the situation or launch a more in-depth investigation. The CMA has the power to cancel agreements or impose remedies to address competition concerns.
This investigation is part of a larger trend. Regulators on both sides of the Atlantic are worried about big tech companies. These companies are acquiring the talent and technology of innovative AI startups without formal acquisitions. The British regulators are also looking into partnerships between Microsoft and Amazon with smaller AI model makers. This includes companies like Mistral AI and Anthropic.
