The UK's Competition and Markets Authority (CMA) has launched a formal investigation into Microsoft's hiring of former staff from AI startup Inflection AI. The probe, referred for an initial merger investigation, will examine whether Microsoft's recruitment practices and its partnership with Inflection AI constitute a merger situation. The investigation, which follows concerns about close partnerships between firms in the AI sector, will also consider the potential implications for competition. A deadline has been set for September 11 to determine if an in-depth investigation is warranted. The CMA had previously sought public input on several AI investments, including Microsoft's hiring of senior figures from Inflection AI.