Plan your Inflection AI NSO exercise
Calculator · free · no signup · pre-IPOInflection AI is pre-IPO. Plan your NSO exercise tax (federal, state, FICA) at any expected valuation.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your grant
Seeded from secondary-market data, as of Jun 9, 2026
Tax inputs
Hold strategy
No bargain element. Current price is at or below the strike — no tax owed at exercise. Wait for the stock to appreciate past the strike before exercising.
Estimates only. Excludes AMT (NSOs do not trigger AMT), state-AMT, multi-state moves, and disqualifying-disposition edge cases. Not financial advice.
You calculated one NSO decision. The beta plans NSOs alongside RSUs and ISOs in a single multi-year tax plan.
Request beta access →About Inflection AI
Inflection AI is a privately held AI company, incorporated in Delaware and headquartered in Palo Alto, CA.
Last reported secondary-market price: $1.35 per share (as of 2026-06-09). Your own 409A may differ.
MS licensing partial.
Equity grants at Inflection AI typically include incentive stock options (ISOs) and non-qualified stock options (NSOs).
Inflection AI, Inc. is an American technology company which has developed machine learning and generative artificial intelligence hardware and apps, founded in 2022. The company is structured as a public benefit corporation and is headquartered in Palo Alto, California.
Source: Wikipedia (CC BY-SA 4.0)
Refounded in March 2024 after Microsoft hired co-founders Mustafa Suleyman and Karen Simonyan plus most staff in a roughly $650M licensing deal, Inflection pivoted from the Pi consumer assistant to enterprise AI under CEO Sean White. The Palo Alto lab now sells Inflection for Enterprise, letting regulated-industry customers fine-tune Inflection-2.5 and successor models on Azure. Total funding sits near $1.56B (Greylock, Microsoft, Nvidia, Reid Hoffman), and White says no fresh raise is needed. Recent moves include the BoostKPI acquisition and a push into empathetic customer-support and internal-employee agents.
Sources: techcrunch.com · venturebeat.com
Equity comp at Inflection AI
- In March 2024, Microsoft hired most of Inflection's team (including co-founders Mustafa Suleyman and Karén Simonyan) and licensed Inflection's technology in a deal valued at approximately $650 million. Inflection continued as an independent company (rebranded to focus on enterprise AI) under new leadership with Reid Hoffman as chair. Employees who joined before the acquihire held equity in an entity that lost its founding team; remaining equity value depends on the standalone company.
Researched 2026-05-07.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Inflection AI.
Inflection AI NSO exercise creates ordinary income on the bargain element (federal, state, and FICA) at the price on the day you exercise. The calculator works at any valuation, so you can model your exercise cost at the current 409A FMV, an expected IPO price, or post-IPO scenarios.
Example: at Inflection AI's last reported price of $1.35, exercising 5,000 NSOs with a $1 strike creates a $1,750 bargain element, taxed as ordinary income on the day you exercise. Combined federal + state + FICA on that bargain typically lands between $473 and $788 depending on your bracket and state. The calculator above computes the exact figure for your situation and compares selling now vs. holding through the long-term capital-gains threshold.
All Inflection AI tools → · Use the generic NSO Exercise Calculator for any company.
Inflection AI equity questions
- How is a Inflection AI NSO exercise taxed?
- Exercising a non-qualified stock option (NSO) creates ordinary income on the bargain element (the price on the day you exercise minus your strike), subject to federal income tax, state income tax, and FICA. The calculator above computes that tax for your Inflection AI grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
- Does Inflection AI grant ISOs, NSOs, or RSUs?
- Equity compensation at Inflection AI typically takes the form of incentive stock options (ISOs) and non-qualified stock options (NSOs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise.
- Are Inflection AI shares eligible for QSBS?
- They might be. Qualified small business stock (QSBS) under Internal Revenue Code Section 1202 can exclude federal tax on much of the gain when shares were acquired at original issuance from a C-corporation while its gross assets were under $50 million, and held at least five years. Whether your Inflection AI shares qualify turns on when you acquired them and the company's asset size at that time.
One piece of the puzzle.
OptionsAhoy plans your Inflection AI equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.