The $650M Deal That Wasn't an Acquisition
Microsoft hired Inflection AI's team in March 2024 for $650M without buying the company—a new model of tech talent acquisition.
In March 2024, Microsoft made an unusual deal: they paid Inflection AI $650 million—but didn't buy the company.
Instead, they hired most of Inflection's team, including co-founder Mustafa Suleyman (DeepMind co-founder), and licensed their technology.
It was a "quasi-acquisition"—getting the talent and IP without the regulatory scrutiny of a full buyout.
What Happened
The team: Mustafa Suleyman became Microsoft AI CEO, most Inflection employees followed The tech: Microsoft licensed Inflection's models The company: Inflection pivoted to enterprise AI services The cost: $650M total
Microsoft got the talent without anti-trust issues.
Why This Model?
Regulatory avoidance: Full acquisitions face intense scrutiny Talent focus: In AI, people matter more than companies Speed: Faster than merger approval processes Flexibility: Easier to integrate talent than corporate structures
It might become the new norm for AI talent acquisition.
Where Are They Now?
Suleyman leads Microsoft's consumer AI efforts. Inflection continues as a separate enterprise-focused company. The deal set a precedent for "talent acquisitions" in AI.
March 2024 was when tech companies found a new way to acquire AI talent without calling it an acquisition.