Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

The UK is investigating the Microsoft and OpenAI partnership

Dec 11, 2023 - qz.com
The UK's Competition and Markets Authority (CMA) is gathering information on Microsoft and OpenAI to determine if their partnership could threaten competition, potentially leading to a formal antitrust investigation. This comes after a series of deals between US tech giants and AI startups, and increased scrutiny of the AI industry by regulators worldwide. Microsoft, which has a significant investment in OpenAI, has been propelled to a leading role in the AI space, launching products like the revamped Bing with AI and Copilot.

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.
View Full Article

Comments (0)

Be the first to comment!