PANews reported on May 14th that, according to foreign media reports cited by Jinshi, sources familiar with the matter said that Microsoft (MSFT.O) is seeking to acquire an artificial intelligence startup in preparation for reducing its dependence on its once crucial partner, OpenAI. The potential acquisition would help Microsoft build up its AI talent pool and advance its previously stated goal of creating an advanced AI model by next year. Sources said that this spring, Microsoft considered acquiring code generation startup Cursor, but ultimately abandoned the plan due to internal assessments suggesting the deal would be difficult to pass regulatory review because Microsoft owns GitHub Copilot. Microsoft is currently in talks with Inception, a small startup founded by a Stanford University team that focuses on developing large language models using a technology called "diffusion." Microsoft's venture capital fund, M12, participated in Inception's $50 million seed round in late 2025. Microsoft also faces strong competition from other tech giants, especially Elon Musk's SpaceX. Sources indicated that SpaceX has also approached Inception.