EU Drops Microsoft’s OpenAI Investment Probe
European antitrust regulators have decided not to pursue a formal investigation into Microsoft’s significant investment in OpenAI, a leader in generative artificial intelligence (AI).
The European Commission had initially raised concerns in January regarding whether Microsoft’s financial support for OpenAI falls under EU merger rules. This followed the UK regulator, the CMA, seeking feedback on the potential antitrust implications of the relationship between the two entities.
Despite Microsoft investing up to $13 billion in OpenAI, the European Commission has now reportedly concluded that the investment does not warrant a formal probe as it does not constitute a takeover. Microsoft does not exert control over the direction of OpenAI, as confirmed by the Commission.
While the partnership between Microsoft and OpenAI is in the clear in terms of an EU antitrust investigation, regulators in other regions, such as the US, continue to scrutinize the collaboration. In the US, the Justice Department and the Federal Trade Commission are reportedly considering an investigation.
Additionally, the UK’s Competition and Markets Authority is reviewing whether the Microsoft-OpenAI deal could impact competition among British firms. Furthermore, some EU lawmakers are calling for an investigation into Microsoft’s investment in Mistral AI, a Paris-based company, citing concerns about the tech giant’s growing influence.
Despite avoiding an EU antitrust probe related to its investment in OpenAI, Microsoft remains under informal scrutiny in various regions. The evolving landscape of partnerships between tech giants and AI developers continues to attract regulatory attention, highlighting the need for ongoing monitoring and potential investigations.
