03:54 AM EDT, 05/14/2026 (MT Newswires) -- Microsoft ( MSFT ) is evaluating potential acquisitions of artificial intelligence startups as the company positions itself for a future less dependent on OpenAI, Reuters reported Wednesday, citing unnamed people familiar with the matter.

Among the opportunities considered was code-generation startup Cursor, though Microsoft ( MSFT ) stepped back over concerns of regulatory scrutiny because of its ownership of GitHub Copilot, the report said.

Microsoft ( MSFT ) is also in talks with Inception, a startup focused on an alternative approach to large language models, according to the report.

Microsoft's ( MSFT ) venture arm M12 participated in Inception's $50 million seed funding round in late 2025. The discussions remain ongoing and may not lead to a transaction, the report said.

Microsoft ( MSFT ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)