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Microsoft & OpenAI to Be Investigated by UK Antitrust Regulator

Dec 11, 2023 - 80.lv
The UK Competition and Markets Authority (CMA) has begun gathering information on the Microsoft-OpenAI partnership to assess whether it could be considered a merger and its potential impact on competition. The CMA notes that the partnership is complex, involving substantial investments, technology development, and Microsoft's influence on OpenAI's governance structure.

The article also highlights Microsoft's significant role in OpenAI, as a major investor and exclusive provider of its cloud services. This was particularly evident when Microsoft intervened in a conflict resulting from the firing of OpenAI's co-founder, Sam Altman, in November 2023. The resolution saw Altman reappointed as CEO, the return of fellow co-founder Greg Brockman, and Microsoft gaining a seat as a "non-voting observer" on the revised board.

Key takeaways:

  • The UK Competition and Markets Authority (CMA) has begun gathering information about the Microsoft-OpenAI partnership to assess if it can be considered a merger and its potential impact on competition.
  • The CMA's investigation process starts with reviewing comments from various stakeholders before a formal investigation.
  • Microsoft has had a significant influence on OpenAI, including substantial investments, technology development, and involvement in the governance structure.
  • During a conflict within OpenAI, there were discussions of co-founders Sam Altman and Greg Brockman joining Microsoft, leading to a reshuffling of the board and reappointment of Altman as CEO.
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