The competition watchdog in the United Kingdom, which is the first significant regulator to raise possible competition issues regarding the tech giant’s relationship with one of the most significant AI startups today, has begun a first assessment of Microsoft’s massive investment into ChatGPT inventor OpenAI.
In response to whether Microsoft’s $10 billion investment in OpenAI has resulted in a “relevant merger situation,” where two or more businesses have ceased or will cease to be distinct as a result of a transaction, the Competition and Markets Authority said in a statement on Friday that it is seeking opinions from interested parties.
The CMA stated that the rate at which AI is expanding is “unrivalled in economic history” and that the development of general-purpose AI tools, like ChatGPT, is at a “pivotal moment” due to advancements in “foundation models.”
According to the regulator, it will investigate if Microsoft’s collaboration with OpenAI has led to an acquisition of control, or if one business now holds more than 50% of the voting rights in another company or has significant influence or de facto control over it.
“Sorcha O’Carroll, senior director for mergers at the CMA, stated in a statement that the invitation to comment is the first step in the CMA’s information gathering process and comes before the launch of any phase 1 investigation, which would only happen once the CMA has received the information it needs from the partnership parties.”
Brad Smith, President and Vice Chair of Microsoft, criticised Google’s 2014 acquisition of British AI lab DeepMind in response to the CMA’s announcement, claiming that Microsoft’s collaboration with OpenAI is distinct from that transaction.
“Since 2019, we have established a collaboration with OpenAI that has encouraged increased AI creativity and rivalry, all the while maintaining autonomy for both firms,” Microsoft’s Smith stated in the statement on Friday.
Source (CNBC)
