Is Microsoft's Talent Poaching Of Inflection Staff Inviting EU Antitrust Scrutiny? Margrethe Vestager Warns: 'If Things Become A Trend...'
Portfolio Pulse from Ananya Gairola
The EU's antitrust chief, Margrethe Vestager, has expressed concerns over Microsoft Corporation's acquisition of talent from Inflection AI, including its co-founders. This move, which involved hiring most of Inflection's staff for Microsoft's new AI unit, bypassed traditional regulatory scrutiny. Vestager warned that if such practices become a trend, they could potentially trigger antitrust action. This comes amid the EU's ongoing scrutiny of Microsoft's investment in ChatGPT-parent OpenAI for potential anti-competitive practices.
April 04, 2024 | 2:36 am
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Microsoft's acquisition of talent from Inflection AI, including bypassing traditional regulatory scrutiny, has caught the EU's attention, potentially inviting antitrust scrutiny.
The EU's antitrust chief's warning about Microsoft's talent acquisition from Inflection AI indicates a potential for regulatory scrutiny. This situation, coupled with the ongoing scrutiny of Microsoft's investment in OpenAI, suggests a heightened regulatory risk for Microsoft. Such developments could negatively impact investor sentiment and Microsoft's stock price in the short term, as markets typically react unfavorably to potential legal and regulatory challenges.
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