The CMA is investigating the links between Microsoft and OpenAI. (Source: Getty Images) |
The CMA is seeking comments from both US companies and relevant third parties, the agency said in a statement on December 8. The purpose of the investigation is to determine whether the partnership “including recent developments” between Microsoft and OpenAI “could lead to a merger between the two companies and, if so, what effect the merger might have on competition in the UK.”
The investigation comes as Microsoft announced late last month that a representative from the software giant had been appointed to OpenAI's new board of directors as an observer.
A few days earlier, OpenAI's internal turmoil had come as the company's board of directors at the time had fired CEO Sam Altman and then brought him back to work amid protests from employees and investors.
According to the CMA, the criteria for meeting the “relevant merger situation” could include “the acquisition of a minority stake or, in some cases, commercial arrangements such as software outsourcing arrangements.” The CMA said the rapid development of artificial intelligence (AI) technology presents both opportunities and risks to the competitiveness of businesses, as well as the responsibility to protect consumers. At the same time, the agency stressed the “need for sustainable competition” between companies involved in AI development.
In response to the above developments, in a statement to the press, Microsoft President Brad Smith affirmed: “Since 2019, we have built a partnership with OpenAI to promote more innovation and competition in the field of AI, while maintaining the independence of both companies.
The only thing that has changed is that Microsoft will now have a non-voting supervisor on OpenAI’s board. This is very different from an acquisition like Google’s purchase of DeepMind in the UK. We will work closely with the CMA to provide them with all the information they need.”
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