The CMA will examine whether Microsoft and OpenAI’s relationship could be considered a merger
An initial review into the relationship between OpenAI and Microsoft has been announced by the UK’s competition watchdog amid concerns the duo could be impacting competition in the UK AI market.
The Competition and Markets Authority (CMA) said it intends to examine whether Microsoft’s significant investment in the firm amounts to an “acquisition of control”, or a merger.
Sorcha O’Carroll, senior director for mergers at the CMA said this initial review will see the watchdog seek comment from both parties. This phase of the investigation could determine whether a full competition probe is conducted, O’Carroll added.
Microsoft is a major backer of OpenAI, the company behind ChatGPT. The US tech giant has invested over $10 billion in the firm so far, and owns roughly 49% of the company.
OpenAI was rocked by controversy in late November after a shock boardroom coup resulted in CEO Sam Altman’s ousting from the firm.
Days of chaos followed the incident, which saw Altman co-founder Greg Brockman join Microsoft to lead a new AI research team before being re-appointed within a matter of dats.
The duo’s return to OpenAI was partly due to a company revolt that saw staff demand their immediate return.
