Microsoft Seeks AI Startup Acquisitions to Reduce OpenAI Dependence

Microsoft is reportedly seeking to acquire AI startups to reduce its reliance on OpenAI, with talks to buy Inception for over $1 billion.

Microsoft Seeks AI Startup Acquisitions to Reduce OpenAI Dependence

Microsoft is reportedly looking to acquire AI startups to reduce its dependence on OpenAI. The software giant has invested roughly $100 billion in OpenAI since 2019.

Microsoft targets Inception for acquisition

According to a Reuters report citing five people familiar with the matter, Microsoft has begun searching for AI startups that may be open to acquisition. The company is in talks to acquire Inception, an AI startup founded in 2024 by Stanford graduates. Inception's founders are reportedly seeking a price of over $1 billion.

Microsoft previously explored acquiring Cursor but decided against it due to regulatory concerns.

The report is based on unnamed sources, and Microsoft has not confirmed the acquisition plans or the details of any negotiations.

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