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After raising $1.3B, Inflection got eaten alive by its biggest investor, Microsoft

TechCrunch · 1y

Microsoft announced its acquisition of Inflection, a company that raised $1.3 billion last year to develop advanced AI technology. Co-founders Mustafa Suleyman and Karén Simonyan will join Microsoft, with Suleyman leading the new Microsoft AI division. Inflection's remaining staff will remain with new CEO Sean White to salvage the company. Inflection aimed to create a personalized conversational AI, but struggled to keep up with competitors like OpenAI and Google's Gemini. The acquisition highlights the power of legacy tech companies in the AI space and raises questions about the viability of personalized AI.