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EU weighing whether Microsoft-OpenAI alliance could be subject to antitrust probe - SiliconANGLE

Jan 09, 2024 - siliconangle.com
The European Commission may launch an antitrust probe into Microsoft's partnership with OpenAI, following concerns that the investment could be reviewable under the EU Merger Regulation. This comes after the UK's Competition and Markets Authority initiated a similar review to determine if Microsoft's investment in OpenAI qualifies as a relevant merger situation. The US Federal Trade Commission is also reportedly reviewing the partnership.

Microsoft has reportedly invested $13 billion in OpenAI since 2019, with $10 billion provided through a collaboration announced last January. The companies also signed a profit-sharing agreement, with Microsoft expected to receive 75% of OpenAI’s net income until it recoups the investment. However, a Microsoft spokesperson stated that the company does not own any portion of OpenAI. The partnership is also under scrutiny due to developments in the governance of OpenAI.

Key takeaways:

  • The European Commission is considering launching an antitrust probe into Microsoft's partnership with OpenAI, following a similar review by the UK's Competition and Markets Authority.
  • The US Federal Trade Commission is also reportedly reviewing the partnership, with the inquiry said to be in a preliminary stage.
  • Microsoft has reportedly invested $13 billion in OpenAI since 2019, with the majority of the capital provided through a collaboration announced last January.
  • Despite reports that Microsoft is set to receive a 49% stake in OpenAI, a spokesperson for the company has stated that it does not "own any portion" of the AI developer.
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