Microsoft's hiring of staff from AI startup Inflection referred for UK merger probe

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Microsoft's hiring of employees from artificial intelligence startup Inflection has been referred for an initial merger investigation in the U.K.

Microsoft's hiring of employees from artificial intelligence startup Inflection has been referred for an initial merger investigation in the U.K.

If it finds reason to investigate further, the Competition and Markets Authority can refer the case for an in-depth investigation, known as a "Phase 2" probe. Mustafa Suleyman, co-founder and chief executive officer of Inflection AI UK Ltd., speaks at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2024.hiring of certain former employees from artificial intelligence startup Inflection has been referred for an initial merger investigation in the U.K.

Britain's Competition and Markets Authority said Tuesday that the hiring of Mustafa Suleyman, Inflection's co-founder, along with most of the startup's staff, should be assessed to decide whether it constitutes a merger under U.K. rules and therefore could result in less competition within the AI sector.

If it finds reason to investigate further, the CMA can refer the case for an in-depth investigation, known as a "Phase 2" probe. The CMA said it would announce a decision on whether to refer the case for a Phase 2 investigation by Sept. 11.

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