HERE’S HOW MICROSOFT IS PROVIDING A ‘GOOD OUTCOME’ FOR INFLECTION AI VCS, AS REID HOFFMAN PROMISED

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Unnamed sources say that Microsoft is paying approximately $650 million in its deal with Inflection AI. $620 million was paid for non-exclusive licensing fees for Inflection's technology and $30 million was paid to get Inflection to agree not to sue over Microsoft's poaching. Inflection will pivot away from building a personalized AI chatbot to becoming an AI studio that helps other companies work with large language model AI. Microsoft has several reasons for needing a backup for OpenAI - for one, its deal with OpenAI is being scrutinized by the FTC.