capital · May 16, 2026
Microsoft Eyes AI Startup Acquisitions to Diversify Beyond OpenAI
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Microsoft explores acquisitions of AI startups including Inception to build its own cutting-edge AI model by 2027. The company dropped talks to acquire Cursor due to regulatory concerns over GitHub Copilot ownership and is negotiating with Inception after M12 invested in its $50 million seed round. Microsoft has spent over $100 billion on OpenAI investments and infrastructure including $11.8 billion of a promised $13 billion. Microsoft considered acquiring Inception which seeks over $1 billion in a deal also courted by SpaceX.
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