OpenAI Saga Unfolds: UK Considers Antitrust Probe into Microsoft Partnership
In a significant turn of events, the UK government is contemplating an antitrust investigation into Microsoft’s association with OpenAI. The deal, aimed at resolving recent leadership turmoil within the AI startup, has raised concerns about potential impacts on competition.
Unpacking the Antitrust Scrutiny
Regulators at the UK’s Competition and Markets Authority (CMA) are seeking public feedback on whether the close and multi-faceted relationship between Microsoft and OpenAI could be deemed a “relevant merger.” The announcement comes amid growing antitrust scrutiny of Microsoft in the UK, with the CMA probing various aspects, including its practices in cloud services and the merger with Activision Blizzard.
Microsoft and OpenAI’s Response
Microsoft emphasized that OpenAI will maintain its independence and clarified that the only change is the addition of a non-voting observer on OpenAI’s Board. The tech giant expressed its commitment to working closely with the CMA to provide all necessary information.
OpenAI echoed Microsoft’s sentiments, highlighting that the partnership empowers them to pursue research independently while operating competitively. The non-voting board observer, as per OpenAI, does not confer governing authority or control over its operations.
Potential Investigation Focus
The proposed investigation aims to scrutinize whether Microsoft holds “de facto control” over OpenAI. The CMA’s process typically involves an invitation to comment, followed by potential first and second-phase investigations.