Microsoft has invested over $10 billion into OpenAI and will take a non-voting position on the board.
The CMA has invited interested parties to comment on the matter by January 3, 2024.
The UK's Competition and Markets Authority (CMA) is reviewing the partnership between Microsoft and OpenAI.
The United Kingdom's Competition and Markets Authority (CMA) is currently reviewing the partnership between tech giant Microsoft and artificial intelligence research lab OpenAI. The CMA is seeking public feedback on the matter, with the aim of determining whether the partnership could be considered a de facto merger, potentially leading to a formal investigation. The review follows recent leadership changes at OpenAI.
Microsoft has invested over $10 billion into OpenAI and will take a non-voting position on the board. The company has insisted that the firms retain independence, fostering AI innovation and competition. OpenAI has not commented on the matter. Microsoft's CEO, Satya Nadella, stated that Microsoft had not been consulted on the decision to fire OpenAI's CEO, Sam Altman.
The CMA has previously clashed with Microsoft over its takeover of gaming giant Activision Blizzard. The announcement reflects increasing antitrust scrutiny of Microsoft in the UK, as the CMA has previously investigated the company on various fronts. Other regulators, including the European Union, are also closely monitoring the situation. The CMA has invited interested parties to comment on the matter by January 3, 2024.
Microsoft has stated that OpenAI will remain an independent company and that their partnership has fostered AI innovation and competition.
The announcement reflects increasing antitrust scrutiny of Microsoft in the UK, as the Competition and Markets Authority has previously investigated the company on various fronts.