OnLive was recently sold and restructured to avoid bankruptcy, losing half of its workforce.
Microsoft is courting former OnLive staff to fill positions in its gaming division.
In a posting on event management site EventBrite, Microsoft stated that it wanted to speak to anyone that had been hit by the recent financial turbulence at OnLive.
'We are eager to speak to individuals and teams affected by the OnLive transition,'
said a Microsoft spokesperson in the listing. 'We are looking to add key players who want to make a real impact in creating groundbreaking new products and services.'
The software giant is looking to fill positions in its Mountain View offices and Washington headquarters.
OnLive was recently sold to a newly-formed company under an Assignment for the Benefit of Creditors (ABC), an order whereby a company can quickly sell off assets to another company in order to escape bankruptcy.
As a result of the move, all of the cloud gaming company's employees were laid off with only half being re-hired again at the newly created entity. Before the deal, OnLive owed between $30m and $40m in debt according to The San Jose Mercury News
Microsoft was rumoured to be readying an acquisition bid for OnLive back in 2010 when the service first launched. Sony has also recently made a move into the cloud gaming market with its acquisition of one of OnLive's more prominent rivals, Gaikai, which Sony bought for $380m in June.
Microsoft is currently readying several new product launches, including Windows 8 and its Surface tablet devices. Last week, the company also updated its logo for the first time in 25 years.