02:37 PM EDT, 03/21/2024 (MT Newswires) -- Microsoft ( MSFT ) will pay Inflection AI $650 million and also hire its staff in a licensing deal, Reuters reported Thursday, citing a person familiar with the matter.

The licensing agreement allows Inflection's models for sale on Azure cloud service, according to the report. Inflection will utilize the license fee to give returns to some investors, the person reportedly told the news outlet.

On Tuesday, Microsoft ( MSFT ) announced the appointment of Mustafa Suleyman and Karen Simonyan, co-founders of Inflection AI, as chief executive and chief scientist, respectively, in its new division, Microsoft AI.

Neither Microsoft ( MSFT ) nor Inflection immediately responded to MT Newswires' requests for comments.

(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.)

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