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Amazon lures cofounders from startup Adept to bolster AI efforts

Amazon.com (AMZN.O), opens new tab hired away artificial intelligence startup Adept’s co-founders and some of its team in a move that echoes one by rival Microsoft (MSFT.O), opens new tab, as it seeks to battle a perception that it is playing catch-up in AI.

Adept said in a blog post Friday that cofounder and CEO David Luan, as well as several other co-founders and employees were leaving to join Amazon.

The San Francisco-based startup, which has raised over $410 million and is valued above $1 billion, already named a new CEO.

The move is similar to one by Microsoft, which in March hired away much of Inflection AI’s leadership and employees and agreed to pay a roughly $650 million licensing fee.

That deal has attracted regulatory scrutiny – the Federal Trade Commission is looking into whether the deal was a play to skirt merger disclosure requirements, a person told Reuters earlier this month.

Adept said it would continue to operate independently of Amazon. Amazon will pay Adept a licensing fee to use some of its technology, which helps automate business functions. An Amazon spokesperson declined to disclose terms of the non-exclusive deal.

By Reuters News

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