Inflection Devoured by Top Investor Microsoft After Raising $1.3B

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In June 2023, Inflection announced it had raised $1.3 billion to build what it called “more personal AI.” The lead investor was Microsoft. Today, less than a year later, Microsoft announced that it was essentially eating Inflection alive (though I think they phrased it differently). Co-founders Mustafa Suleyman and Karén Simonyan will go to Microsoft, where the former will head up the newly formed Microsoft AI division, along with “several members” of their team as Microsoft put it — or “most of the staff,” as Bloomberg reports it. Ultimately Microsoft got a bit of extra leverage on the company instead of eating it alive. Whether it was OpenAI or Inflection, Microsoft was feeding their cash and compute addictions, whispering in their ear about partnerships, and then as soon as they tripped, out came the hidden fork and knife.