Amid the hunt to hire developer talent in the AI space, regulators in the European Union are expressing interest in recent developments in which Microsoft lifted and moved most of the team at Inflection.
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Microsoft formed an AI division last month led by Mustafa Suleyman and Karén Simonyan, founders of Inflection. It is reportedly paying the Palo Alto-based startup $650 million in a move that saw many of the team transferred to Microsoft, along with Redmond giving away the rights to use Inflection's models.
EU competition officials are already inspecting Microsoft's investment in OpenAI, believed to be around $13 billion, and checking whether it violates the region's merger rules. Also under the magnifying glass is Microsoft's $15 million stake in Mistral.
Margrethe Vestager, head of the European Commission and head of the antitrust team, said this week that the exchange between Microsoft and Inflection was not a merger and therefore "not caught by merger rules."
