03:54 AM EDT, 05/14/2026 (MT Newswires) -- Microsoft (MSFT) is evaluating potential acquisitions of artificial intelligence startups as the company positions itself for a future less dependent on OpenAI, Reuters reported Wednesday, citing unnamed people familiar with the matter.

Among the opportunities considered was code-generation startup Cursor, though Microsoft stepped back over concerns of regulatory scrutiny because of its ownership of GitHub Copilot, the report said.

Microsoft is also in talks with Inception, a startup focused on an alternative approach to large language models, according to the report.

Microsoft's venture arm M12 participated in Inception's $50 million seed funding round in late 2025. The discussions remain ongoing and may not lead to a transaction, the report said.

Microsoft did not immediately respond to MT Newswires'request for comment.

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