Microsoft faces UK antitrust probe over OpenAI contract structure

The UK antitrust regulator is considering launching a merger investigation into Microsoft’s multibillion-dollar collaboration with OpenAI.

The announcement drew a response from Microsoft, which only plays a non-voting observer role in the ChatGPT producer group.

Notice of Inquiry He follows The announcement by the maker of SatGBT will have a non-voting board seat at the US tech giant. As announced by the Competition and Markets Authority (CMA) on Friday 8 December, the collaboration will review whether it is a “controlling acquisition”.

Observer status means that a Microsoft representative can attend OpenAI board meetings and have access to confidential information, but does not have the right to vote on matters including elections or the selection of directors.

“In light of these developments, the CMA now provides the ITC to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a material merger situation and, if so, has had a potential impact on competition.”

The move follows Microsoft’s November announcement Takes a non-voting observer position on the OpenAI board. It is the second time the regulator has reviewed the US software company’s operations this year, and it said it will consider whether the deal created a material merger situation.

Microsoft Vice President and President Brad Smith emphasized Smith said Microsoft is willing to work closely with the CMA on the platform.

A step Bloomberg reportMicrosoft has committed to investing more than $10 billion in OpenAI by January 2023. Microsoft is also set to launch a $3.2 billion investment in artificial intelligence (AI) infrastructure and training in the United Kingdom.

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