EU Commission Investigates Microsoft’s Investment in OpenAI and Impact on AI Market
The European Commission has launched an investigation into Microsoft’s investment in OpenAI and its potential impact on the AI market. In addition to examining the deal under the EU Merger Regulation, the commission is also looking into agreements between major digital market players and generative AI developers.
The investigation follows OpenAI’s announcement in November 2023 that Microsoft, which has made significant investments in the AI company, would receive a non-voting observer seat on OpenAI’s board. This move came shortly after OpenAI’s CEO, Sam Altman, was ousted and then reinstated amidst internal conflicts.
As part of its investigation, the European Commission is seeking feedback from stakeholders regarding the level of competition in the virtual worlds and generative AI sectors. The commission aims to gather insights on how competition law can ensure these emerging markets remain competitive.
The European venture capital investment in AI reached an estimated €7.2 billion in 2023, highlighting the significant growth potential of the technology in the coming years. Furthermore, the virtual worlds market in Europe is estimated to have surpassed €11 billion in 2023. The EC believes that both AI and virtual worlds will have a major impact on business competition.
Generative AI services have gained popularity since the launch of OpenAI’s ChatGPT in 2022. Companies worldwide have developed their own large language models (LLMs) to provide services such as content and image generation. The European Commission’s investigation aims to ensure fair competition and market dynamics in this rapidly evolving industry.
The commission plans to review all feedback and contributions received by March 11. Following the review, a workshop may be organized in the second quarter of 2024 to gather different perspectives on the matter.
Overall, the European Commission’s investigation into Microsoft’s investment in OpenAI highlights the importance of competition and market dynamics in the AI sector. With the exponential growth expected in AI and virtual worlds, it is crucial to ensure fair competition and innovation to drive the industry forward.
