Inflection AI, known for creating the Pi chatbot, raised $1.3 billion from investors and had 1 million active daily users, but struggled to find an effective business model. Amid this, Microsoft CEO Satya Nadella invited Suleyman to join Microsoft. The move is seen as an attempt to bring real competition in the AI field, with Nadella expressing excitement about the future of personal computing.
Key takeaways:
- Microsoft has appointed DeepMind Co-founder Mustafa Suleyman as the head of its consumer AI unit, marking the first time all of Microsoft’s consumer AI business will be under a single leader.
- Microsoft has also hired most of the staff from Suleyman’s Inflection AI startup, which created the Pi chatbot, a tool designed to mimic human understanding of emotions.
- Despite Microsoft's significant investment in AI, it still lags behind Google, DeepMind’s parent company, in the AI-enhanced search engine sphere.
- There is ongoing debate about the realistic impact of AI on revenue growth, with some viewing recent projections by Big Tech CEOs as a potential turning point, while others remain skeptical.