SKY Eye

US regulators are investigating whether a deal Microsoft Corp. struck with AI startup Inflection may have been structured to avoid scrutiny, the Wall Street Journal reported, citing a person familiar with the matter.

Microsoft in March agreed to pay the startup $650 million to license its AI software, after the US company moved to hire much of Inflection’s staff. The Federal Trade Commission is now seeking information about how they negotiated that partnership, the Journal reported. The unusual deal resembled an “acqui-hire” — where big companies take over startups mostly for their employees — but without an acquisition. Legal and industry experts at the time suggested Microsoft’s Inflection deal may trigger regulatory concerns.