U.K. antitrust officials are weighing whether Microsoft’s partnership with Inflection AI and the hiring of former employees pose a threat to competition, the latest probe into the tech giant’s ties with artificial-intelligence startups.
Earlier this year, Microsoft hired Inflection AI’s co-founder and almost all of its employees and agreed to pay the startup around $650 million as part of a licensing fee to resell its technology.
The Competition and Markets Authority said it was considering whether Microsoft’s ties with Inflection AI should be considered a de facto merger that might stifle competition in the U.K., with an initial decision due by Sept. 11.
“We are confident that the hiring of talent promotes competition and should not be treated as a merger,” a Microsoft spokesperson said. “ We will provide the U.K. Competition and Markets Authority with the information it needs to complete its enquiries expeditiously.”
The U.K. probe follows the Federal Trade Commission opening an investigation into whether Microsoft structured the deal with Inflection AI to avoid a government antitrust review of the transaction.
Write to Mauro Orru at mauro.orru@wsj.com
