Microsoft faces probe from UK's CMA over AI staff hires

THE UK Competition and Markets Authority has launched an official probe into Microsoft over its hiring of former employees of Inflection AI - a company it was partnered with.

Cabot Square-based CMA has joined several other global regulators in focusing on anti-competitive behaviour in the artificial intelligence industry, with a series of deals involving start-ups and Microsoft coming under the microscope.

Earlier this year, Google DeepMind co-founder Mustafa Suleyman was snapped up by Microsoft to head up its new AI unit. The unit hired several employees of Inflection AI, which Suleyman founded in 2022.

It is understood Inflection AI received around $650 million in order to compensate investors in the start-up.

Microsoft was quick to defend its position over news of the investigation.

"We are confident that the hiring of talent promotes competition and should not be treated as a merger," a statement read.

"We will provide the UK Competition and Markets Authority with the information it needs to complete its enquiries expeditiously."

Microsoft must sweat it out until September 11, which is the deadline for the CMA to decide whether or not to escalate the investigation.

Last week, the tech giant gave up a seat as a 'board observer' with OpenAI to alleviate the concerns of US and UK regulators. It is also currently raising eyebrows over its partner deals with French firm Mistral AI.