Microsoft (MSFT) is exploring acquisitions of AI startups as the company positions for a future less dependent on OpenAI, though concerns over regulatory scrutiny led it to abandon discussions around Cursor due to overlap with GitHub Copilot, Reuters’ Deepa Seetharaman, Milana Vinn, and Kenrick Cai report. Microsoft is in discussions with Inception, a small startup built by a Stanford University team focused on a different method of developing large language models, three people familiar with the matter say. SpaceX also courted Inception, people familiar with the matter say, adding that Inception has hired a bank to help negotiate a deal and is looking for a price of over $1B.
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