Microsoft has made significant moves in the AI sector by hiring the co-founders, including Mustafa Suleyman, and most of the staff of AI startup Inflection, which raised over $1.3 billion from investors. This strategic acquisition-like move allows Microsoft to bolster its AI management team without undergoing a formal acquisition process, thus avoiding potential antitrust scrutiny. Inflection, initially challenging OpenAI's ChatGPT, is now pivoting from a consumer AI to an API company, with its LLMs offered on Azure. This shift is part of Microsoft's broader strategy to diversify its AI portfolio beyond OpenAI, amidst concerns over antitrust scrutiny and to hedge its bets in the rapidly evolving AI market. The deal also includes a licensing agreement for Inflection's proprietary technology, offering a pathway for Inflection investors to recoup their investments over time.