The investigation follows recent upheaval at OpenAI, when CEO Sam Altman was briefly ousted and then reinstated, causing uncertainty about the company's relationship with Microsoft. Microsoft CEO Satya Nadella reassured OpenAI employees during this period, promising them jobs at Microsoft. The partnership between Microsoft and OpenAI includes an agreement that Microsoft is the startup’s exclusive cloud services provider. Despite Microsoft's substantial investment, it does not own any portion of OpenAI but is entitled to a share of profit distributions.
Key takeaways:
- The Competition and Markets Authority (CMA) is gathering information on Microsoft and OpenAI to decide whether their partnership threatens competition in the UK.
- The CMA's investigation comes after OpenAI CEO Sam Altman was briefly ousted, putting a spotlight on its relationship with Microsoft.
- Microsoft has invested at least $10 billion for a 49% stake in OpenAI, but does not own any portion of the company and is entitled to a share of profit distributions.
- Microsoft's president, Brad Smith, emphasized that their investment in OpenAI is different from an acquisition, and that they will work closely with the CMA to provide all the information it needs.