EU Launches Investigation into Microsoft’s $10 Billion Investment in OpenAI
BRUSSELS: Microsoft’s financial support for ChatGPT maker OpenAI could fall under European Union merger rules, EU antitrust authorities said on Tuesday, echoing a similar warning from its British counterpart in December.
The US software giant, which last year committed to investing more than $10 billion in OpenAI without voting rights on the board, has said it does not own any stake in OpenAI.
The European Commission had previously announced that it would closely monitor the development of the situation.
“The European Commission is reviewing whether Microsoft’s investment in OpenAI can be reviewed under the EU’s merger regulation,” the EU’s competition watchdog said in a statement.
Microsoft said its 2019 partnership with OpenAI has increased AI innovation and competition while preserving the independence of both companies.
“The only thing that has changed recently is that Microsoft now has a silent observer on the OpenAI board,” a Microsoft spokesperson said.
The Commission said that the impact on market dynamics of agreements reached between some major digital market players and developers and providers of generative artificial intelligence is being investigated. It did not name the companies.
On Tuesday, the Commission also gave the parties involved until March 11 to provide feedback on competition in virtual worlds and generative artificial intelligence.
It also sent requests for information to several major digital companies on these two topics.
“We ask companies and experts to tell us about any competition issues they may notice in these areas, while we closely monitor AI partnerships to ensure they do not unnecessarily distort market dynamics,” EU antitrust chief Margrethe Vestager said.
