The UK is investigating whether Microsoft hired employees from an artificial intelligence (AI) start-up to merge with it effectively.
Important Inflection AI personnel departed in March to work for the tech behemoth, with co-founder Mustafa Suleyman leading the new AI branch.
If this was a merger, the Competition and Markets Authority (CMA) would consider whether it could reduce competition.
A Microsoft representative told the BBC that They were confident that hiring talent promotes competition and should not be treated as a merger.
The preliminary investigation, a phase one inquiry, was launched in response to a CMA request for feedback on Microsoft’s April hiring of Inflection employees.
Mr. Suleyman previously stated in a post on X that he was “excited” to start his new job at Microsoft and would be bringing along several of his Inflection coworkers.
Among them was Karén Simonyan, the company’s chief scientist and “friend and longtime collaborator” of Mr. Suleyman.
The CMA will proceed to a more thorough investigation if it determines sufficient evidence to suggest that Microsoft and Inflection engaged in a “merger” that might have reduced competition.
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