Microsoft Pursues Cursor and Inception Deals After $100B OpenAI Spend, Faces UK Probe
Microsoft is exploring acquisitions of AI startups such as Cursor and Inception to reduce reliance on OpenAI after $100B of investments. UK regulators have opened an antitrust probe into Microsoft's business software dominance, potentially leading to targeted action over its 'strategic market status'.
1. AI Acquisition Pursuits
Microsoft has evaluated acquiring coding startup Cursor but paused due to potential regulatory challenges tied to its GitHub Copilot ownership. The company is also in talks to acquire Inception, a startup developing diffusion-based large language models aimed at boosting AI speed and efficiency.
2. Scaling AI Internally Beyond OpenAI
Since 2019, Microsoft has invested over $100 billion in its OpenAI partnership covering investments, infrastructure, and hosting, driving its decision to build advanced AI models in-house to diversify its AI portfolio and reduce reliance on a single partner.
3. UK Opens Antitrust Probe
UK regulators have launched an investigation into Microsoft's dominance in business software, examining whether its strategic market status warrants targeted action against practices in its enterprise software suites, which could lead to regulatory remedies or structural changes.