The UK is investigating if Microsoft has merged with an AI start-up, Inflection AI, by hiring its staff. Several key employees from Inflection AI, including co-founder Mustafa Suleyman, joined Microsoft in March.
Suleyman now leads Microsoft’s new AI division.
The UK’s Competition and Markets Authority (CMA) is looking into whether this hiring counts as a merger and if it could reduce competition.
Microsoft believes hiring talented people encourages competition and should not be seen as a merger.
Additionally, Microsoft has a deal to use Inflection AI’s models, which isn’t exclusive.
This investigation, known as a phase one inquiry, started after the CMA asked for opinions on Microsoft’s hiring in April.
If the CMA finds enough evidence suggesting a merger that could harm competition, it will conduct a deeper investigation, deciding by September 11 whether to clear or further investigate the transaction.
Inflection AI specializes in generative AI, which creates media like text and images using large datasets.
Big tech companies, like Microsoft, Google, and Meta, are investing in generative AI to attract users and investors. Microsoft’s support of OpenAI, which developed the popular ChatGPT, is a prime example.
The CMA is concerned about big tech’s dominance in AI. In April, CMA chief executive Sarah Cardell warned about the risks of big tech companies using their resources to control AI technology.
She emphasized the need for fair competition to ensure that the benefits of AI are shared widely.
Source: BBC
https://www.bbc.com/news/articles/crg5eemmn9eo