Microsoft AI Startup Deal Investigated by FTC: What To Know

The FTC is questioning whether Microsoft's agreement with Inflection AI was structured to avoid an antitrust review. Here's what you need to know.

outside of microsoft headquarters in Paris, France, on a cloudy day
(Image credit: RICCARDO MILANI/Hans Lucas/AFP via Getty Images)

Microsoft (MSFT) shares are trading lower Thursday on news the Federal Trade Commission (FTC) is probing whether the tech giant structured its recent deal with artificial intelligence (AI) startup Inflection AI to avoid an antitrust review, according to The Wall Street Journal.

In March, Microsoft hired Inflection AI's co-founder and nearly all of its employees, agreeing to pay the startup approximately $650 million as part of a licensing deal to resell its technology, the WSJ said. 

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.