Microsoft Plans to Acquire More AI Startups to Strengthen Its In-House Large Model Layout

AI competition among tech giants is no longer just about model performance—more companies are strengthening their AI businesses by acquiring startups to gain technology and talent. As an early investor in OpenAI, Microsoft is actively seeking new AI acquisition targets.

Microsoft is currently engaging with some potential AI startups for sale, including Inception (founded in 2024 by Stanford graduates, focusing on large language model development). The company previously invested in Inception via its M12 fund, and negotiations are ongoing for a valuation exceeding $1 billion. Moreover, as OpenAI reduces its reliance on Microsoft and partners with Amazon and others, Microsoft is accelerating its in-house large model development, making acquisitions a key part of its AI expansion strategy.