The UK CMA concluded its investigation of Microsoft's hiring of key staff members from Inflection. And it has good news and bad news.

According to Reuters, Microsoft agreed to pay approximately $650 million as part of the deal, gaining access to Inflection's AI models and enabling the startup to reimburse its investors.

Microsoft only bought Inflection’s IP and hired away its key staff, but that’s still enough to constitute a merger, a UK regulator ruled.

The U.K.’s antitrust regulator says that the tech titan's high-profile acquihire of the team behind AI startup Inflection doesn't cause competition concerns, and thus it won't be pursuing a full-scale investigation.

Microsoft ($MSFT) has received a green light from the UK’s Competition and Markets Authority (CMA) for its partnership with Inflection AI, an

UK regulators clear Microsoft’s hiring of Inflection AI staff, ruling no harm to competition. Tech giants like Amazon and Google also boost AI investments.