Microsoft's (MSFT) OpenAI Investment Risks Scrutiny from FTC, UK's CMA
Dec 08, 2023 - bloomberg.com
The US Federal Trade Commission is reportedly examining Microsoft Corp.'s investment in OpenAI Inc. to determine if it may violate antitrust laws. The inquiries are still in the preliminary stage and no formal investigation has been launched yet. Microsoft, which has invested approximately $13 billion in OpenAI, did not report the deal to the FTC due to OpenAI's non-profit status.
The nature of Microsoft's investment and its integration of OpenAI's products into its core businesses is under scrutiny. However, the details of the matter remain confidential. The potential implications of this scrutiny could impact both US and UK regulators' views on Microsoft's OpenAI investment.
Key takeaways:
The US Federal Trade Commission is examining Microsoft Corp.’s investment in OpenAI Inc. for potential antitrust violations.
The inquiries are currently preliminary and no formal investigation has been opened yet.
Microsoft has invested approximately $13 billion in OpenAI and has integrated its products into its core businesses.
Microsoft did not report the deal to the FTC due to OpenAI's non-profit status.
