Microsoft's deal with Inflection raised concerns about talent acquisition practices and potential antitrust violations, as the FTC investigates the situation.
The agreement involved Microsoft paying a $650 million 'licensing fee' to Inflection to utilize its AI models and hire most of its employees, including its CEO, raising eyebrows.
Regulators are looking into whether Microsoft's actions were aimed at sidestepping antitrust scrutiny through the 'licensing fee' and employee acquisition approach.
Microsoft's spokesperson outlined that the agreements with Inflection were focused on talent acquisition while allowing Inflection to maintain its independent AI goals.
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