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Microsoft's $10 billion partnership with OpenAI faces its first big antitrust hiccup

Dec 08, 2023 - businessinsider.com
The UK's Competition and Markets Authority (CMA) is scrutinizing Microsoft's partnership with OpenAI, which resulted in a $10 billion investment in OpenAI. The CMA is assessing whether the partnership has led to Microsoft gaining control over the ChatGPT maker and is inviting third parties to comment on the potential impact on competition. The watchdog has been monitoring such partnerships in AI that could potentially weaken competition and hinder the development or use of foundation models.

This is not the first time the CMA has investigated such partnerships. In 2019, it probed Amazon's 16% investment in Deliveroo, but later cleared the tech giant's stake in the company. The CMA's current focus is on whether Microsoft's investment and provision of cloud services to OpenAI represents a close, multi-faceted relationship that could affect competition in the AI market.

Key takeaways:

  • The UK's Competition and Markets Authority (CMA) is scrutinizing Microsoft's partnership with OpenAI, which involved a $10 billion investment in OpenAI.
  • The CMA is concerned about whether the partnership has resulted in Microsoft gaining control over OpenAI, and is inviting third parties to comment on the potential impact on competition.
  • Interested parties have until January 3 to share their views, after which the CMA will decide whether to launch an official investigation.
  • This is not the first time the CMA has investigated such partnerships; in 2019, it probed Amazon's 16% investment in Deliveroo, but later cleared the tech giant's stake in the company.
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