Five Months Post-Microsoft Acquisition, Inflection Introduces Usage Caps for Pi

Inflection is set to limit free access to its AI chatbot, Pi, in the upcoming months, as announced by the startup. In a significant update, users will now have the ability to export their Pi conversations, reflecting the company's shift under new CEO Sean White toward enterprise-focused products.

These usage caps come just one year after Inflection secured a staggering $1.3 billion to develop its “emotionally intelligent” AI chatbot. Microsoft, a leading investor in that round, hired away Inflection's founders and most of its staff five months ago, paying $650 million to license its AI technology and reimburse investors. At that time, Inflection reported millions of weekly users for Pi.

This acquisition has drawn scrutiny from antitrust regulators in both the U.S. and U.K. as they investigate whether Microsoft’s actions were anticompetitive, essentially absorbing Inflection. Following the acquisition, CEO Sean White has navigated the startup through this challenging transition.

Recently, it was reported that the company considered discontinuing Pi altogether due to resource constraints. “We have to very carefully apply our resources,” White mentioned, emphasizing the company's careful management of its limited assets.

However, plans have since evolved, and White is now committed to supporting the consumer version of Pi. To alleviate the strain on GPU resources, Inflection will implement usage caps primarily impacting high-frequency users. A company spokesperson stated that the “exact limits are still being determined.”

In addition, Inflection is partnering with the Data Transfers Initiative, allowing users to export important conversations with Pi. This initiative aims to enhance data mobility and transferability, setting a standard in the AI industry that White hopes other companies will mirror. Currently, users cannot import conversations from Pi to other chatbots like ChatGPT; they can only export from Pi.

Looking ahead, Inflection's strategy may focus on licensing its AI models for integration into other organization systems. White revealed that 13,000 organizations have expressed interest in gaining API access to Pi.

“Honestly, we don’t have all the resources to handle 13,000 requests, so we’ve had to be selective in our collaborations,” explained White.

The company has engaged with numerous large banks, insurance firms, and several Fortune 500 companies regarding its enterprise products. White believes Inflection’s fine-tuning capabilities position it to customize AI models for specific business needs more effectively than its competitors. He anticipates unveiling the first enterprise products and partnerships this fall.