Is Microsoft Trying To Diversify Its OpenAI Risk By Hiring Inflection AI Founders? Cathie Wood's Potential Successor Thinks So
Portfolio Pulse from Ananya Gairola
Microsoft Corporation (NASDAQ:MSFT) has hired the founders of Inflection AI, Mustafa Suleyman and Karén Simonyan, to diversify its AI strategy beyond its significant investment in OpenAI. Brett Winton of Ark Invest highlighted this move as a strategy to mitigate OpenAI-related risks. Microsoft previously led a $1.3 billion funding round for Inflection AI and has also invested in another AI startup, Mistrial AI. Suleyman and Simonyan will lead a new division focusing on consumer AI, integrating efforts with Copilot, Bing, and Edge.

March 20, 2024 | 5:21 am
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Microsoft's hiring of Inflection AI founders and its diversified investments in AI startups like Mistrial AI indicate a strategic expansion and risk mitigation in its AI portfolio.
Microsoft's decision to hire key figures from Inflection AI and invest in other AI startups demonstrates a clear strategy to diversify its AI investments and reduce dependency on OpenAI. This could potentially enhance Microsoft's position in the AI market, offering new products and services, thus likely having a positive impact on its stock in the short term.
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