Microsoft's links with OpenAI to be examined by competition watchdog

The UK's Competition and Markets Authority (CMA) is set to scrutinize Microsoft's high-value partnership with OpenAI, to determine if it could be classified as a merger. Microsoft, reportedly the largest investor in OpenAI, maintains that it has preserved the independence of both entities. However, the relationship has come under increased scrutiny following recent upheaval at OpenAI.

Last month, OpenAI, renowned as the creator of ChatGPT, was thrown into disarray when its CEO, Sam Altman, was abruptly dismissed. Following his dismissal, Microsoft extended an offer to him to lead a new advanced AI research team, before he was reinstated at OpenAI due to an appeal from employees. This incident cast a spotlight on the influence of commercial competition on the development of AI systems and the rapid pace of technological advancement.

The CMA has invited comments, particularly in light of these developments. The watchdog is questioning whether the partnership has resulted in an acquisition of control, whether an effective merger has taken place, and if this could impact competition in the UK. If deemed necessary, the CMA could initiate an investigation. In response to the announcement, Microsoft stated that its partnership with OpenAI has fostered more AI innovation and competition.