According to Reuters, on May 13, Microsoft is preparing a strategy to lessen its reliance on long-term partner OpenAI by considering potential acquisitions and investments in AI startups. Sources familiar with the matter indicated that this move is part of Microsoft's efforts to secure AI talent and develop advanced AI models by 2027.
Microsoft had previously considered acquiring Cursor, a startup that provides AI tools for software developers to write and modify code. However, discussions were reportedly halted due to internal concerns that acquiring Cursor could face antitrust scrutiny, especially since Microsoft already owns GitHub Copilot.
The company is also in discussions with Inception, an AI startup founded by researchers at Stanford University. Inception is developing language models using a diffusion-based approach, distinct from existing large language models (LLMs). Microsoft's venture capital arm, M12, participated in a $50 million initial investment in Inception at the end of last year.
Inception has recently hired an investment bank to explore potential sale options, with reports suggesting it is seeking over $1 billion. However, discussions are ongoing, and it remains uncertain whether a deal will materialize.
The push to enhance its own AI capabilities comes amid evolving dynamics in Microsoft's relationship with OpenAI. Microsoft began its partnership with OpenAI in 2019 with a $1 billion investment. Following the success of ChatGPT in late 2022, Microsoft actively integrated OpenAI's technology into its products and Azure cloud services.
As the collaboration expanded, the interests of both parties became increasingly complex. Reuters reported that Microsoft faced contractual limitations in developing foundational models that could compete with OpenAI, which in turn believed that the computing resources provided by Microsoft were insufficient. Consequently, both companies have relaxed their agreements multiple times.
In a securities filing on April 29, Microsoft disclosed that it had executed $11.8 billion of the $13 billion it promised to OpenAI. Additionally, a Microsoft corporate development executive testified in court that the company has spent over $100 billion on OpenAI investments, infrastructure development, and hosting costs.
* This article has been translated by AI.
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