Inflection AI plans to license its technology to Microsoft after CEO moves to the latter

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Key notes

  • Inflection AI pivots to licensing its AI tech to businesses, following key staff departures to Microsoft.
  • Investors in the $1.5 billion-funded startup will be compensated.
  • Inflection appoints new CEO and focuses on enterprise market with its expertise in training large AI models.
  • The company retains core technology and seeks to become “the AI platform for businesses around the world.”

Inflection AI, the founder company of Pi chatbot (a personal favorite), has announced a shift towards licensing its technology to businesses. This decision comes after the recent departure of several pivotal employees, including CEO Mustafa Suleyman and Chief Scientist Karén Simonyan, who joined Microsoft.

Inflection, which recently launched Inflection-2.5, has secured funding exceeding $1.5 billion from investors, including Microsoft, Nvidia, Bill Gates, and Reid Hoffman, who will remain on the board as co-founder. The company will appoint Sean White, a current board member with experience as chief research and development officer at Mozilla, as the new CEO.

As reported by Bloomberg, Inflection’s initial focus was on developing consumer-oriented chatbots, with their product Pi designed to function as a personal assistant. However, the company encountered challenges in establishing a viable business model for this application.

Inflection is said to retain its core technology and concentrate on enterprise solutions. The company emphasizes its expertise in training large AI models as a key advantage in the business market. In a recent blog post, Inflection expressed confidence in its ability to serve as “the AI platform for businesses around the world.”

We’re thrilled to announce that we will now host Inflection-2.5 on Microsoft Azure helping us get it into the hands of creators everywhere.

Specific details regarding the number of remaining employees and the terms of the agreement with Microsoft are not yet available.

Here is the official announcement.