Microsoft’s $13 Billion OpenAI Deal to Avoid Formal EU Probe
Apr 17, 2024 - bloomberg.com
Microsoft's $13 billion investment in OpenAI Inc. will not be subjected to a formal investigation by European Union merger watchdogs. This decision alleviates concerns that the partnership could be forcibly dissolved. The European Commission has determined that the collaboration does not warrant a formal inquiry as it does not constitute a takeover, and Microsoft does not control OpenAI's direction.
Key takeaways:
Microsoft Corp.’s $13 billion investment into OpenAI Inc. is not going to face a formal investigation by European Union merger watchdogs.
This decision alleviates concerns that the relationship between Microsoft and OpenAI could be forcibly dissolved.
The European Commission has determined that the partnership does not warrant a formal investigation as it does not constitute a takeover.
The decision was also influenced by the fact that Microsoft does not control the direction of OpenAI.
