OpenAI Investment From Microsoft Could Get Probed By EU Regulators

(CTN News) – Microsoft’s (MSFT.O) investment in ChatGPT maker OpenAI may be subject to EU merger rules, EU antitrust regulators said on Tuesday. In December, Microsoft’s UK counterpart issued a similar warning.

It has been reported that the US software giant, which committed to invest over $10 billion into OpenAI last year with a non-voting seat on the board, does not own a stake in the company.

According to previous statements, the European Commission is closely monitoring the development of the situation.

The European Commission is determining whether Microsoft’s investment in OpenAI could be subject to review under the EU Merger Regulation, said the EU executive, which is responsible for enforcing EU competition laws.

With the partnership Microsoft entered into with OpenAI in 2019, the two companies have been able to foster more AI innovation and competition while maintaining their independence.

According to a Microsoft spokesperson, the only change that has occurred recently is that Microsoft will now have a non-voting observer on OpenAI’s Board.

It was reported by the Commission that some agreements between large digital market players and generative AI developers and providers are being examined for their impact on market dynamics. There was no mention of the companies.

On Tuesday, the Commission requested feedback from interested parties regarding competition in virtual worlds and generative artificial intelligence by March 11.

A number of large digital companies were also contacted to obtain information about both topics as part of the initiative.

” As head of European Union antitrust policy Margrethe Vestager said: “We invite businesses and experts to provide us with any concerns they have regarding competition in these industries. We will closely monitor AI partnerships to ensure that their effect on market dynamics is not unduly distorted,”

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