Microsoft to Pay Inflection AI $650 Million After Hiring Staff (2)

Microsoft Corp. has agreed to pay Inflection AI $650 million, largely to license its artificial intelligence software, alongside its move earlier this week to hire much of the startup’s staff, according to a person familiar with the transaction.

Microsoft stunned the AI world on Tuesday with an announcement that it had hired Inflection’s co-founders Mustafa Suleyman and Karén Simonyan, along with most of the startup’s 70 employees. The unusual deal, first reported by Bloomberg News, resembled an “acqui-hire” — but without an acquisition. Some legal and industry experts have suggested that Microsoft’s Inflection deal might still spark antitrust concerns with US regulators, who are increasingly scrutinizing ...