Microsoft's strategy of 'acqui-hiring' from Inflection, described as a 'non-acquisition acquisition', is raising questions about how it navigates regulatory scrutiny, particularly around traditional acquisitions. This approach is seen as a workaround to regulatory challenges that have frequently blocked previous attempts at acquisitions, with critics arguing that such strategies demonstrate how 'capitalism finds a way' around these obstacles. The situation highlights a broader trend in the tech industry, where leaders, such as the co-founders of DeepMind now working for major companies like Google and Microsoft, underscore the competitive landscape in AI development. This move, involving both OpenAI and Inflection, will test regulators and VCs alike.
Big announcement from @Microsoft and @inflectionAI this week! Inflection was initially intended as a direct competitor to @OpenAI @sundeep and @jason break down what it all means. A new way around M&A regulatory scrutiny? https://t.co/xoVL2vEDWx
Don’t call it an acquisition. It’s just Microsoft draining Inflection and putting it on life support. That and notes on Reddit’s IPO, DoJ v Apple, and more in this week’s newsletter: https://t.co/0xR5ZWYosP https://t.co/GaMmxD0d8Y
A very interesting turn of events - One co-founder of DeepMind runs Google AI and the other runs Microsoft AI DeepMind started as a research organization in 2010 in the hope of pursuing general open(?) AI that benefits humanity! Now both co-founders work for giant companies…
As regulators constantly and unreasonably block acquisitions, Microsoft is pioneering the non-acquisition acquisition with its OpenAI and Inflection deals (Newcomer) https://t.co/3FyuhDL9x7 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/nJwCAzGY6T
Microsoft’s Non-Acquisition Acquisition ... Much of the blame for Microsoft’s creativity here falls at the feet of regulators: If regulators constantly (and unreasonably) block acquisitions, our greatest business minds will obviously find workarounds. Capitalism finds a way. https://t.co/PvbFKwlDHR
Microsoft’s Non-Acquisition Acquisition https://t.co/KtRnB25tYQ (Second item in the newsletter with @maddierenbarger)
Microsoft’s ‘acqui-hire’ at Inflection will test regulators and VCs https://t.co/amq1iijGc5