Microsoft paid Inflection AI $620 million for the nonexclusive right to sell access to the Inflection AI model through its Azure Cloud over a multiyear period, the companies confirm. Microsoft paid an additional $33 million for a waiver from claims against it related to hiring Inflection employees. Neither company would divulge the value of the compensation package that Microsoft granted to Mustafa Suleyman, Inflection’s founder and former CEO, who now leads Microsoft’s consumer AI division. After the model licensing fee, the waiver fee, and the executive and employee compensation are tallied, Microsoft’s deal with Inflection is likely worth more than $1 billion, says a source with direct knowledge of the deal. Inflection investors didn’t make out quite so well. The new B2B version of Inflection has far less upside than the original Inflection, which had been valued at $4 billion.