In a development, in the tech industry Microsoft has recently closed a deal with Inflection AI, a company aiming to make a mark in the artificial intelligence field particularly competing with established players like OpenAI.
The acquisition deal, shrouded in some secrecy regarding details reportedly involves Microsoft acquiring team members such as co founders Mustafa Suleyman and Karén Simonyan, a portion of the companys workforce and the rights to use its core technology.
Insiders familiar with the situation have revealed that Microsofts investment in this deal totals $650 million. This amount includes $620 million for exclusive licensing rights to Inflection AIs technology allowing the startup flexibility to license its technology elsewhere. An additional $30 million is set aside for Inflection AI to avoid disputes with Microsoft related to acquiring its co founders and select employees.
Despite being relatively new since its establishment in 2022 Inflection AI has garnered interest and funding raising, over one billion dollars at a valuation of $4 billion.
This recent funding round received investments from a range of known backers, such, as Bill Gates, Microsoft, Eric Schmidt ( Google CEO) and the Dragoneer Investment Group.
The agreement marks a change for Inflection AI as it moves away from its plan of creating a personalized AI chatbot called Pi powered by 22,000 Nvidia AI chips. The company is now shifting towards becoming an AI studio that helps other businesses utilize advanced language model AI technologies.
Microsofts acquisition of Inflection AI not highlights the nature of the AI industry, where major cloud providers have already formed partnerships with various AI companies but also showcases Microsofts ability to secure valuable assets and expertise for its own AI projects.
Despite Microsofts existing collaboration with OpenAI acquiring Inflection AI with its founders extensive experience and technical skills, in language models positions Microsoft advantageously in the changing world of artificial intelligence.
Furthermore the purchase acts as a safety net, for Microsoft enabling the tech giant to uphold a collection of AI technologies and talents given the ongoing regulatory scrutiny and internal issues within its partnership with OpenAI.
Although Inflection AI has chosen not to provide input on the deal they leave a legacy of aspirations and a vision for progressing AI technologies. With the industry constantly changing Microsofts acquisition signifies not the conclusion of one chapter for Inflection AI but the start of a fresh era of innovation and cooperation, in the wider AI community.