Microsoft is negotiating the acquisition of Inception, a large language model startup founded by a Stanford University team.
The startup is reportedly seeking a valuation exceeding $1 billion.
This move reflects Microsoft's strategy to decrease its reliance on primary partner OpenAI.
Microsoft’s venture fund, M12, previously invested in Inception’s $50 million seed round.
That investment occurred in late 2025.
Discussions are ongoing and a final agreement is not certain.
Competition for AI talent and technology is intensifying as companies like SpaceX also pursue sector deals.