By ETEnterpriseAI Desk
Publication Date: 2026-05-14 05:36:00
Microsoft is exploring acquisitions of artificial intelligence startups as it prepares for a future less dependent on longtime partner OpenAI, according to people familiar with the matter, Reuters reported.
The potential deals are aimed at strengthening Microsoft’s AI talent pool and accelerating efforts to develop a cutting-edge AI model by next year, sources said.
Among the targets considered was coding startup Cursor. However, Microsoft reportedly backed away from acquisition talks due to concerns that a deal could face regulatory scrutiny because of its ownership of GitHub Copilot.
The company is also in discussions with Inception, a Stanford-linked startup focused on an alternative approach to large language models using diffusion-based techniques. Microsoft’s venture arm, M12, had previously invested in…
