UK launches competition probe into Microsoft and Inflection AI
Earlier this year, the software giant hired former Inflection and DeepMind scientist Jordan Hoffman to lead its new AI hub in London. The UK is investigating whether Microsoft hiring former employees of Inflection AI and other deals between the two parties has implications relevant to a merger situation.
Competition and Markets Authority Investigation
According to the Competition and Markets Authority (CMA), the merger inquiry will assess whether the creation of that situation has led or may lead to a “substantial lessening of competition” in the UK market. Microsoft has been investing heavily in AI development and the hiring of key personnel from Inflection AI.
Mustafa Suleyman, the co-founder and former CEO of Inflection and co-founder of Google DeepMind, was hired by Microsoft to head its overall AI business. He mentioned that the London hub will drive advancements in language models, create tools for foundation models, and collaborate with AI teams across Microsoft and its partners, including OpenAI.
Microsoft's AI Investments in the UK
Last November, Microsoft made its largest-ever investment in the UK with a commitment of £2.5bn over the next three years to expand its AI data centre footprint in the country and foster research into the technology. This investment showcases Microsoft's dedication to the UK market and its focus on advancing AI technologies.
The Competition and Markets Authority is currently conducting a merger inquiry to determine the impact of Microsoft's hiring practices and partnerships with companies like Inflection AI on competition in the UK market.
Joel Bamford, CMA executive director of mergers, emphasized the importance of maintaining open, fair, and effective competition in the foundation model markets to ensure that the benefits of AI transformation are realized by businesses and individuals in the UK.
Interested parties had the opportunity to provide their views on the matter during a comment period earlier this year. The deadline for a phase 1 decision following the investigation is scheduled for 11 September this year.
Overall, the investigation aims to ensure that competition in the AI market is preserved, allowing for innovation and growth in technology sectors such as healthcare, energy, transport, and finance.
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Related topics: UK, Microsoft, AI, legal, appointments, M&As
