The UK’s Competition and Markets Authority is seeking comments about who controls Microsoft and OpenAI and possible risk of a merger.
The UK’s Competition and Markets Authority is looking into whether the connections between Microsoft and OpenAI open up the possibility of a merger, which could impact competition.
On Dec. 8, the CMA announced it is seeking comments from Microsoft, OpenAI and interested third parties. This is not a formal investigation, the CMA noted, but is rather a standard, preliminary information-gathering step.
The CMA’s eventual decision might set a standard for other AI companies. OpenAI’s situation is very specific due to its ownership structure and its particular relationship with Microsoft. From here, the CMA will decide whether or not to open a formal phase 1 investigation into alleged anti-competitive business practices.The CMA’s look into Microsoft and OpenAI
Of particular note to the CMA is the shakeup at OpenAI in November 2023, when the board removed and later reinstated CEO Sam Altman. Microsoft CEO Satya Nadella announced Altman would join Microsoft, but Altman later returned to OpenAI as CEO and to the board n Nov. 29.
“Since 2019, we’ve forged a partnership with OpenAI that has fostered more AI innovation and competition, while preserving independence for both companies,” Microsoft President and Vice Chair Brad Smith said on X (formerly Twitter).
