Microsoft's multibillion-dollar partnership with ChatGPT maker OpenAI is facing potential investigation by the UK's competition regulator, the Competition and Markets Authority (CMA). The CMA wants to review if the partnership has resulted in an acquisition of control and if it has impacted competition. Microsoft is a major investor in OpenAI and reportedly owns a 49% stake in the company. The CMA has asked interested parties, including rivals like Google, to comment on the arrangement. The saga involving Sam Altman, the CEO of OpenAI, briefly joining Microsoft during his exile from OpenAI, has partly influenced the CMA's decision.
Microsoft President and Vice Chair Brad Smith downplayed the partnership, stating it is "very different from an acquisition such as Google's purchase of DeepMind in the UK." Microsoft emphasized that OpenAI will retain operational independence. The company stated it would cooperate with the CMA's review, while OpenAI has not commented on the matter.
The CMA has been closely monitoring the AI industry for potential competition and consumer protection issues. Earlier this year, the CMA resisted Microsoft's record $69 billion takeover of gaming giant Activision Blizzard before ultimately approving the deal in October.
The UK government is also considering an antitrust probe of Microsoft's relationship with OpenAI. The CMA is seeking public feedback on whether to initiate an investigation to determine if the close relationship between the two companies could be considered a "relevant merger." Microsoft has reassured that OpenAI will remain an independent company and expressed willingness to provide all necessary information to the CMA.
Microsoft's CEO Satya Nadella has previously highlighted the deep integration between Microsoft and OpenAI, emphasizing their partnership in furthering AI innovation. However, he also emphasized that Microsoft respects OpenAI's independence. The CMA's potential investigation reflects the increasing antitrust scrutiny faced by Microsoft in the UK. The CMA has previously examined Microsoft's practices in cloud services and its merger with Activision Blizzard.
themes: ChatGPT OpenAI Sam Altman AI (Artificial intelligence) Microsoft Google