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Microsoft Seeks AI Startups to Break OpenAI Reliance, Eyes Inception Talks

GateNews
AI Industry News

According to sources, on May 14, Microsoft is seeking to acquire artificial intelligence startups to reduce its dependence on OpenAI and advance internal AI model development. The tech giant considered acquiring code generation startup Cursor this spring but abandoned the deal due to regulatory concerns tied to its GitHub Copilot ownership. Microsoft is currently negotiating with Inception, a Stanford-founded AI startup focused on large language models. Microsoft’s venture fund M12 participated in Inception’s $50 million seed funding round in late 2025.

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