Inflection, a technology company, is undergoing significant changes as it shifts its business model to B2B, licensing its proprietary technology to Microsoft, among potentially other companies. This strategic move includes an undisclosed financial agreement with Microsoft, which is aimed at ensuring Inflection's investors are compensated over time. According to sources, this arrangement, described by some as an acquisition by Microsoft without the need for regulatory approval, allows Inflection investors to be made whole. Inflection's valuation at the last funding round was approximately $4 billion. Satya Nadella, Microsoft's CEO, is seen as playing a key role in this deal, offering Inflection employees the equivalent equity to Inflection’s last round. The company has made a unique commitment to its investors, promising that they will recoup their investments through the sales of Inflection's models on Azure and possibly other cloud platforms. This promise comes with the assurance that investors will retain their existing stakes even after being made whole.
'This was basically an acquisition of Inflection without having to go through regulatory approval. It would be easy to see Microsoft offering Inflection employees the equivalent equity to Inflection’s last round (priced at $4B I believe)." Satya Nadella may be savviest tech… https://t.co/hD5BbCoY5i
New w @nmasc_: Inflection has made an unusual promise to investors that they'll recoup their investment through sales of the startup's models on Azure (and other clouds). Inflection projects costs will be lower after most of its staff join Microsoft https://t.co/FHj6Yv6aJN
New details on an unusual aspect within Inflection's next chapter. Investors have been promised they're going to be made whole (and then some) as part but will also retain existing stakes after the payout. w/ @aaronpholmes https://t.co/gxPMR4hi5g