The Competition and Markets Authority (CMA) determined that Microsoft's acquisition of Inflection AI would not substantially lessen competition due to Inflection's small market presence.
Inflection had a very small share of UK domain visits for chatbots and conversational AI tools, and had not been able to materially increase or sustain its chatbot user numbers.
Competitors did not regard Inflection’s capabilities in emotional intelligence or other product innovations as a material competitive constraint on the market.
The CMA concluded that Inflection's foundational model offering would not exert a material competitive constraint on Microsoft or other foundational model suppliers.
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