Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

FTC wants Microsoft's relationship with OpenAI under the microscope

Dec 12, 2023 - theregister.com
The US Federal Trade Commission (FTC) is reportedly considering an investigation into Microsoft's investment in OpenAI, to determine if any antitrust rules have been violated. Despite Microsoft's significant investment, it does not control OpenAI, a non-profit founded in 2015. The UK's Competition and Markets Authority (CMA) has also launched a consultation to examine Microsoft's relationship with ChatGPT developer, OpenAI, and whether it could be viewed as a merger that potentially distorts competition.

The FTC has already started investigating OpenAI's ChatGPT over privacy and reputational issues. Despite Microsoft's $69 billion deal to acquire Activision Blizzard, the FTC has continued its efforts to reverse the merger. The CMA approved Microsoft's acquisition of Activision Blizzard in October but criticized Microsoft's tactics to push the deal through.

Key takeaways:

  • The US Federal Trade Commission (FTC) is considering an investigation into Microsoft's investment in OpenAI, questioning if any antitrust rules have been broken.
  • Microsoft has invested over $10 billion in OpenAI and despite the investment, it does not own any portion of OpenAI but is entitled to a share of profit distributions.
  • The UK's Competition and Markets Authority (CMA) has launched a consultation to assess Microsoft's relationship with ChatGPT developer, and if it could be seen as a merger that potentially skews competition.
  • The FTC is already investigating OpenAI's ChatGPT over privacy and reputational concerns and has also been scrutinizing Microsoft's $69 billion deal to buy Activision Blizzard.
View Full Article

Comments (0)

Be the first to comment!