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# Microsoft to Pay Inflection AI $650 Million in New License Deal
- URL: https://www.techloy.com/microsoft-to-pay-inflection-ai-650-million/
- Published: 2024-03-26T09:10:43.000Z
- Updated: 2024-03-26T09:10:43.000Z
- Description: The deal is to license its artificial intelligence software and sell the models on its Azure Cloud Service.
- Author: Henry Chikwem
- Tags: / News, Microsoft, Business, / Artificial Intelligence

Tech giant, Microsoft has agreed to pay Inflection AI $650 million to license its artificial intelligence software and sell the models on its Azure Cloud Service.

The company also agreed to pay [$30 million](https://techcommunity.microsoft.com/t5/us-canada-tech-talks-forum/microsoft-s-650-million-deal-with-inflection-ai-key-things-to/m-p/4095533) to cover any legal rights as it hires a majority of the staff at Inflection AI including its co-founders, Mustafa Suleyman and Karén Simonyan. Investors of the company will now see their investments rise by 1.5 times to 1.1 times depending on the dates of their investments, according to Microsoft board member Reid Hoffman. 

Inflection AI, founded in 2022, became valued at $4 billion after raising [$1.3 billion](https://techcrunch.com/2023/06/29/inflection-ai-lands-1-3b-investment-to-build-more-personal-ai/) in a funding round led by Microsoft last year. The company had previously partnered with companies like Nvidia and CoreWeave to build the world's largest AI training clusters.