The “hackquisition” model, pioneered by Microsoft, emerged from their strategic moves to acquire talent rather than companies. A key moment occurred in March 2024 when Microsoft opted to onboard the team from Inflection, influencing rivals to adopt similar approaches. This model traces back to a near-hackquisition involving OpenAI in November 2023, when CEO Sam Altman was ousted. Fearing the loss of their $13 billion investment, Microsoft considered hiring OpenAI’s entire workforce, with estimates revealing a potential cost of $25 billion to $29 billion for employee equity. This plan showcased Microsoft’s immense leverage over OpenAI’s IP, stemming from prior agreements. Microsoft’s swift actions suggest a desire to avoid litigation with investors, projecting the hackquisition principle further. The incident not only solidified Microsoft’s control over OpenAI but also foreshadowed their ambition in the AI landscape, which is now valued at approximately $850 billion, reinforcing the financial significance of “hackquisitions” in the tech industry.
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