The UK’s Antitrust Regulator Considers Merger Investigation into Microsoft and OpenAI Partnership
The UK’s antitrust regulator is looking into launching a merger investigation into Microsoft’s collaboration with OpenAI. The investigation comes after OpenAI disclosed that Microsoft would hold a non-voting board seat, prompting the regulator to assess whether the partnership constitutes an “acquisition of control.” Microsoft responded by stating that it only plays an observer role on OpenAI’s board and does not have voting rights. This is the second time this year that the regulator has examined Microsoft’s operations, and it is now considering if the partnership has resulted in a relevant merger situation.
Microsoft Emphasizes Non-Voting Role in Collaboration with OpenAI
Microsoft’s Vice Chair and President, Brad Smith, clarified on social media that the only change in the collaboration between Microsoft and OpenAI is the non-voting observer position on OpenAI’s board. Smith highlighted that this is different from acquisitions such as Google’s purchase of DeepMind. Microsoft has expressed its willingness to cooperate with the regulator throughout the investigation.
Microsoft’s Investments in OpenAI and AI Infrastructure
In January 2023, Microsoft pledged to invest over $10 billion in OpenAI. Additionally, Microsoft plans to launch a $3.2 billion investment in artificial intelligence (AI) infrastructure and training in the United Kingdom.
Hot Take: UK Antitrust Regulator Examines Microsoft-OpenAI Partnership for Potential Merger Situation
The UK Competition and Markets Authority (CMA) is investigating whether Microsoft’s collaboration with OpenAI constitutes an acquisition of control. While Microsoft holds a non-voting observer position on OpenAI’s board, the CMA will assess if this partnership has resulted in a relevant merger situation. This scrutiny follows Microsoft’s significant investments in OpenAI and AI infrastructure. Microsoft has emphasized that its role in the collaboration is different from traditional acquisitions. The investigation by the CMA demonstrates a focus on ensuring fair competition within the tech industry.
By
By
By
By
By
By