The partnership between Microsoft and OpenAI is entering the UK’s sights

The UK antitrust regulator (CMA) is questioning whether the partnership and “recent developments” between Microsoft and OpenAI constitute a merger that affects competition in the UK.

For those in a hurry:

• The UK Antitrust Regulator (CMA) questions whether the partnership between Microsoft and OpenAI can be considered a merger affecting competition in the country;
• The CMA announced that it was gathering views to determine whether to open an investigation to determine whether the close relationship between Microsoft and OpenAI was a “relevant link”;
• In response to the CMA’s concerns, Microsoft said OpenAI would continue as an independent company. Microsoft President Brad Smith highlighted that the partnership launched in 2019 has fostered innovation and competition in AI, while maintaining the freedom of companies;
• Microsoft has invested billions in OpenAI and is working on integrating OpenAI technology into its services. Microsoft CEO Satya Nadella noted that companies are deeply integrated.

Microsoft president Brad Smith spoke about the matter in a post on X (formerly Twitter) this Friday (08):

Since 2019, we have established a partnership with OpenAI that has fostered further innovation and competition in AI while protecting the independence of both organizations. The only thing that has changed is that Microsoft will now have a non-voting observer on the OpenAI board, which is very different from Google’s purchase of DeepMind in the UK. We will work closely with the CMA to provide you with all the information you need.

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Microsoft and OpenAI in the UK

The British regulator has announced it is seeking public comments on whether to launch an investigation into whether the close and multifaceted relationship between Microsoft and OpenAI can be classified as a “related link”.

Microsoft has invested billions in OpenAI and is working to integrate OpenAI technology into its services. Microsoft CEO Satya Nadella said in an interview CNNThe two companies are deeply integrated.

Recently, OpenAI’s CEO Sam Altman was fired and rehired. After that, it was announced that Microsoft would have a non-voting seat on the OpenAI board.

A CMA In light of recent developments in the OpenAI administration involving Microsoft, the partnership announced that it would issue a “call for comment” to determine whether a “material connection” situation and its potential impact on competition have been made.

The CMA’s inquiry process usually begins with public comment, followed by a preliminary inquiry and, if necessary, a further inquiry.