Microsoft’s $650 million deal with Inflection AI: Key things to know
Microsoft will be paying artificial intelligence (AI) startup Inflection $650 million to licence its software, a week after it roped in the company's two cofounders and most of its staff, as per a Bloomberg report.
Let's look at the key details of this deal.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisit> As part of a deal struck with Inflection AI, Microsoft will pay $620 million to the company to license and use its AI models. The remaining $30 million will be paid to give up any legal rights the company may hold related to the mass hiring. The financial contours of the deal were first reported by The Information.
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> Inflection AI is using this deal and the licencing fee to provide some investors, including Greylock and Dragoneer Investment Group, one-and-half times the return.
> The AI company, valued at $4 billion last year after it raised $1.3 billion with Microsoft as its lead investor, will retain its proprietary technology, it said in a blog post earlier this week.
“Our success at training, tailoring and improving the performance of large AI models makes us uniquely well placed to be the AI platform for businesses around the world,” the post read.
> On Tuesday, Microsoft announced the hiring of Mustafa Surleyman, cofounder of Google's DeepMind
