CMA probes Microsoft-OpenAI deal amid AI competition concerns
The U.K.’s Competition and Markets Authority (CMA) has sought public feedback on the partnership between Microsoft and OpenAI, a leading artificial intelligence (AI) research company.
The Competition and Markets Authority (CMA) announced on Friday that it is looking into whether the two tech giants have created a merger situation that could harm AI innovation and competition in the U.K.
The move comes after a turbulent week for OpenAI, which saw its CEO Sam Altman ousted, hired by Microsoft, and then reinstated as the head of the AI firm. Several other OpenAI employees also joined Microsoft, raising questions about the independence and governance of the company.
Microsoft is the largest investor in OpenAI, having committed $13 billion to the AI venture. The software giant also owns 49% of the company’s shares, while the remaining 51% are held by OpenAI staff and other backers.
Microsoft has been using OpenAI’s technology to enhance its own products and services, such as Bing Search, Edge, Github and Office365. The CMA said it is concerned that this could give Microsoft an unfair advantage over its rivals and stifle AI innovation in the U.K.
The CMA is inviting comments from interested parties until December 22, 2023, as part of its preliminary information gathering process. The agency said it has not yet decided whether to launch a formal investigation into the Microsoft-OpenAI deal.
Sorcha O’Carroll, Senior Director for Mergers at the CMA, said: “AI is a rapidly evolving and increasingly important sector that has the potential to bring significant benefits to consumers and businesses. We want to ensure that this partnership does not harm competition and innovation in the U.K. market.”
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