The European Union (EU) has intensified its scrutiny of the partnership between tech giant Microsoft and ChatGPT developer OpenAI to assess its impact on competition within the AI market. After a preliminary examination, the EU’s antitrust chief, Margrethe Vestager, stated that Microsoft has not gained long-lasting control over OpenAI through the $13 billion collaboration.
However, the EU has requested more information from Microsoft regarding potential exclusivity clauses in the agreement with OpenAI that could negatively affect competition. Additionally, the EU is investigating Google’s deal with Samsung to pre-install its AI system, Gemini, on select devices and the practice of acqui-hires where companies acquire other firms primarily for talent.
Microsoft’s recent move to hire senior executives from OpenAI rival Inflection, including its CEO, for a consumer AI unit was also noted but deemed separate from a traditional merger. While American and British regulators are also analyzing the Microsoft-OpenAI alliance, the EU’s conclusion reflects a balanced approach towards competition concerns.
In response to the EU’s examination, Microsoft expressed appreciation for the thorough review and emphasized that the investment and partnership with OpenAI do not entail control over the company. As the investigation progresses, stakeholders are keen on understanding the evolving landscape of AI collaborations and their implications for market dynamics.
