EU competition watchdog examines Microsoft's OpenAI investments
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The news : The European Commission is investigating whether investments made by Microsoft into AI giant OpenAI is in conflict with the Union’s competition rules.
The numbers: Microsoft is a major investor in OpenAI, having first sunk USD1 billion ($1.49 billion) into the AI firm in 2019. In early 2023 Microsoft funnelled another USD10 billion into the company.
The context: Attention from the European regulator comes after significant turmoil hit OpenAI in late 2023, when the board voted to remove founder and CEO Sam Altman. Altman was eventually reinstated, but not before Microsoft offered to bring him onboard along with any OpenAI staff who wished to follow him.
The drama laid bare the deep connections between the two firms, exposing both to significant media and regulatory scrutiny over their ownership and governance structures.
The Commission has called for contributions on competition in virtual worlds and generative AI, requesting information on the impact of partnerships between large digital market players and generative AI developers and providers. It will consider the impact of these agreements on market dynamics. The Commission added that it will specifically assess whether Microsoft's investment in OpenAI might be reviewable under the EU Merger Regulation. The investigation will determine whether a formal probe will be undertaken by the regulator.
The Commission’s investigation into Microsoft's investment follows similar steps already taken by US and UK regulators.
The source: European Commission Press Statement
