EU scrutinizes Microsoft’s OpenAI investment

The European Union said Tuesday it is investigating Microsoft’s multibillion-dollar investment in OpenAI, the artificial intelligence (AI) company behind the popular ChatGPT tool, and whether it is subject to EU merger rules. Announced.

“The European Commission is checking whether Microsoft’s investment in OpenAI is reviewable under the EU Merger Regulation,” the EU’s enforcement arm said in a press release.

The disclosure was made by the European Commission on Tuesday as part of a call for feedback from stakeholders on the “level of competition in the context of virtual worlds and generative AI”.

The Commission also noted that it is examining agreements already in place between major players in the digital market and developers and providers of generative AI and their impact on market dynamics.

The relationship between Microsoft and OpenAI has come under increased scrutiny in recent months following the high-profile ouster and return of OpenAI co-founder and CEO Sam Altman.

Days after Altman was fired by OpenAI’s board in November, Microsoft announced it would hire him to lead a new AI research team.

But Altman was quickly brought back to lead the AI ​​company after hundreds of OpenAI employees threatened to quit. A few days later, OpenAI announced that Microsoft would have a non-voting position on its board of directors.

In early December, the UK’s Competition and Markets Authority similarly announced that it would begin an initial review of the Microsoft and OpenAI partnership and whether it “raised relevant merger circumstances.”