London: The UK’s Competition and Markets Authority (CMA) has decided to drop its review of Microsoft’s partnership with OpenAI, concluding that the arrangement does not warrant a deeper investigation under the country’s merger regulations.
Following an assessment of “available evidence”, the CMA determined that the collaboration between the U.S. tech giant and the ChatGPT developer does not meet the criteria for a merger probe.
No Change in Control, Says Regulator
“In particular, the CMA does not consider there has been a change of control by Microsoft from material influence to de facto control over OpenAI,” the regulator stated.
Microsoft, an early backer of OpenAI, has invested billions of dollars into the San Francisco-based AI startup. However, since its rise to prominence with ChatGPT, OpenAI has drawn interest from other major investors, including Japan’s SoftBank and semiconductor giant Nvidia.
AI Sector’s Rapid Evolution
The CMA acknowledged the fluid nature of the AI industry, noting that key aspects of Microsoft’s partnership with OpenAI had evolved during the course of the investigation.
“The AI sector is still rapidly evolving. Material aspects of the partnership have been changing over the course of the investigation,” the CMA said in its statement.
The watchdog has been intensifying its scrutiny of AI-related deals as major tech firms ramp up investments in generative artificial intelligence.
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Broader AI Oversight by the CMA
The UK regulator has closely monitored the increasing influence of Big Tech in the AI space. Last year, it approved Microsoft’s acquisition of Inflection AI, alongside other high-profile AI deals, such as Google’s and Amazon’s investments in chatbot developer Anthropic.
As AI development accelerates, regulatory bodies worldwide continue to assess how such partnerships may impact market competition, ensuring that no single entity gains excessive control over the future of AI technology.
