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Microsoft Pays $650 Million to Inflection AI for Software Licensing and Staff Hiring

Mar 22, 2024 - techtimes.com
Microsoft has reportedly agreed to pay $650 million to Inflection AI, a company it recently hired the co-founders and 70 employees from. The payment includes $620 million to license Inflection's AI models and $30 million to waive any legal claims related to the mass hiring. The deal, which some experts suggest could raise antitrust concerns, was first reported by Bloomberg News and is seen as an "acqui-hire" without an acquisition.

Inflection AI, which has received a total investment of $1.525 billion, is launching a project to build the world's largest AI cluster in partnership with CoreWeave and NVIDIA. The company, founded by Reid Hoffman and Mustafa Suleyman in 2022, is known for its work in creating AI systems that can converse freely and assist with various tasks. With Microsoft's support, Inflection AI is shifting its focus to the AI studio business, developing and testing generative AI models for clients.

Key takeaways:

  • Microsoft has agreed to pay $650 Million to Inflection AI, including $620 million to license Inflection's AI models and $30 million to waive any legal claims related to the mass hiring of Inflection's co-founders and employees.
  • Inflection AI, co-founded by Reid Hoffman and Mustafa Suleyman, is known for its efforts to create AI systems that could converse freely and assist with various tasks.
  • Inflection AI has announced an inflow of $1.3 billion in finance, with NVIDIA, Microsoft, Reid Hoffman, Bill Gates, and Eric Schmidt leading the investment drive, bringing the total investment in Inflection to $1.525 billion.
  • Inflection is launching a project to build the world's largest AI cluster, with 22,000 NVIDIA H100 Tensor Core GPUs, in partnership with CoreWeave and NVIDIA.
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