Microsoft faces UK antitrust probe over OpenAI deal structure
The UK's antitrust watchdog is considering launching a merger investigation into Microsoft's multibillion-dollar collaboration with OpenAI.
This announcement prompted a response from Microsoft, which announced that it would only play a non-voting observer role on the ChatGPIT maker's board.
The announcement of the probe follows the ChatGPT maker's announcement that it will hold a non-voting board seat at the US tech giant. The test assesses whether the collaboration constitutes an “acquisition of control”, which the Competition and Markets Authority (CMA) defined on Friday 8 December as indicating significant unilateral influence.
The observer position means that a Microsoft representative can attend OpenAI's board meetings and gain access to confidential information, but does not have the right to vote or elect directors.
“In light of these developments, the CMA has now issued an ITC to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a relevant integration scenario and, if so, the potential impact on competition.”
The move comes after Microsoft's announcement in November that it would take a non-voting seat on OpenAI's board. It is the second time the regulator has looked at the US software company's operations this year, and it said it was considering whether the deal resulted in a relevant merger.
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Microsoft vice-chairman and president Brad Smith emphasized on the X platform (formerly Twitter) that the only improvement in the collaboration between the two companies is that Microsoft has a non-voting observer on OpenAI's board – unlike acquisitions such as Google's purchase of DeepMind in the United States. Government. Smith said Microsoft is willing to work closely with CMA.
According to Bloomberg, Microsoft has pledged to invest more than $10 billion in OpenAI by January 2023. Microsoft is to launch a $3.2 billion investment in artificial intelligence (AI) infrastructure and training in the UK.
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