UK regulators investigate over Microsoft’s AI startup's founder, key staff hiring
Date
7/17/2024 9:22:01 AM
(MENAFN) British regulators have initiated a preliminary investigation into Microsoft's recent hiring of key personnel from an AI startup, citing concerns that such moves could undermine competition in the rapidly expanding artificial intelligence market. On Tuesday, the Competition and Markets Authority (CMA) announced that its review of the hirings from Inflection AI, including the co-founder and CEO Mustafa Suleyman, revealed "sufficient information" to warrant an investigation.
Earlier this year, Microsoft recruited Suleyman to lead its consumer artificial intelligence division, along with several top engineers and researchers from Inflection AI. Suleyman, who previously co-founded the AI research lab DeepMind (now owned by Google) before establishing Inflection AI, is recognized as a significant figure in the AI industry.
The CMA is assessing whether these hirings could be considered a merger that results in a "substantial lessening of competition" in the UK's AI market, potentially violating the country's antitrust regulations. In response, Microsoft issued a statement asserting, "We are confident that the hiring of talent promotes competition and should not be treated as a merger. We will provide the UK Competition and Markets Authority with the information it needs to complete its inquiries expeditiously."
The British watchdog has set a deadline of September 11 to decide whether to approve the hirings or to escalate the probe into a more detailed investigation. The CMA possesses the authority to reverse deals or enforce measures to address any competition concerns.
This development comes amidst growing apprehension among authorities on both sides of the Atlantic about major technology companies acquiring talent and innovations from promising AI startups without formally acquiring the companies. Recently, three members of the U.S. Senate wrote to antitrust officials at the Justice Department and the Federal Trade Commission, urging them to scrutinize Amazon's acquisition deal with San Francisco-based AI startup Adept.
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