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Now that Microsoft co-founder and venture investor Paul Allen has gotten into search, look for even more action.

Allen's investment firm Vulcan is a financial backer of a Seattle-based startup called Hypertext Solutions that's focused on making information on the Web more intelligent. Now his portfolio company has paid $3.6 million in cash to buy some mind-blowing search technology appropriately called InFact from Seattle data analysis provider, Insightful Corp.

Here's what InFact does: analyze the syntax, semantics and structure of every sentence to uncover relationships and trends, then sort and summarize the results. It's done through a powerful InFact query language. This sounds like a tool that would work very well for matching up search ads with content.

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Read the whole story at John Battelle's Searchblog »

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