Microsoft and OpenAI’s multibillion-dollar partnership is under scrutiny from the UK’s Competition and Markets Authority over potential competition concerns.
In a statement Friday, CMA said it’s considering whether Microsoft’s partnership with ChatGPT-creator OpenAI is effectively a merger. It said it had begun an “information gathering process,” which typically comes before an investigation.
“There have recently been a number of developments in the governance of OpenAI, some of which involved Microsoft. In light of these developments, the CMA is now issuing an ITC [Invitation to Comment] to determine whether the Microsoft / OpenAI partnership, including recent developments, has resulted in a relevant merger situation and, if so, the potential impact on competition,” CMA said.
Last month, Sam Altman, founder of OpenAI, was abruptly terminated by the company’s board. However, he rejoined the company a week later following a threatened mass exodus by most staff. This incident led to a shakeup of the board, resulting in Microsoft, which owns a 49% share in OpenAI, gaining one board member seat.
CMA also said the pace of AI technology is “unrivaled in economic history” and…
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