Britain's antitrust regulator is contemplating launching an investigation into the extensive collaboration between Microsoft and OpenAI, a partnership that involves billions of dollars.
The probe follows OpenAI's recent disclosure that Microsoft will hold a non-voting seat on the board of directors. Microsoft swiftly responded, clarifying that it would only function as a non-voting observer in OpenAI's board meetings.
The Competition and Markets Authority (CMA) announced on December 8 that it would conduct a review to determine if the collaboration constitutes a situation where one party exerts significant control over the other, commonly known as an "acquisition of control."
Microsoft's non-voting position allows its representatives to attend OpenAI's board meetings and access confidential information. However, they do not possess voting rights on critical decisions like the election or selection of directors. The CMA stated its intention to issue an Initial Enforcement Order (IEO) to examine the potential impact of the Microsoft/OpenAI partnership on competition, considering the recent developments.
This development marks the second time this year that regulators have scrutinized Microsoft's operations, raising questions about whether the collaboration resulted in a merger with related implications. Brad Smith, Microsoft's Vice Chairman and President, highlighted that acquisitions akin to DeepMind differ and emphasized the company's willingness to cooperate with the CMA in this matter.
According to Bloomberg, Microsoft has committed to investing over $10 billion in OpenAI by January 2023 and has additionally pledged $3.2 billion for artificial intelligence (AI) infrastructure and training in the United Kingdom.
