Question:

I've recently did an interview with one company. Ive done two rounds with them, but didn't make the cut. Which is fine. I submitted my resume to another company, and did multiple rounds... but during the interview i find out that company is currently a vendor for the first company i interviewed and I'll be working with them closely...

Do i inform the second company i interviewed with the first? Would it be strange? I'd like to be as transparent as possible, but i don't want the first company to tell the second company i wasn't selected for a position for some reason or another.

All interviews were positive and i personally thought i landed the job, but they went with an internal candidate instead.

What do you guys think i should do in this situation if the second company wants to move forward with me.