Co-founded Inflection AI while serving on Microsoft board, creating conflict of interest in acqui-hire deal
Mar 19, 2024Reid Hoffman co-founded Inflection AI in 2022 while simultaneously serving as a Microsoft board director. When Microsoft hired most of Inflection's staff and paid approximately $650 million in licensing fees in March 2024, Hoffman's dual role raised significant conflict of interest concerns. The FTC investigated the deal as a potentially illegal acqui-hire. Hoffman promised all Inflection investors would have a 'good outcome.' He left the Microsoft board in March 2023 but remained a co-founder of Inflection.