Recently, ChatGPT maker OpenAI gave Microsoft a non-voting seat on the company’s board of directors. In the statement made by the UK’s competition regulator, it was stated that an investigation was launched to determine whether this situation would lead to a merger between Microsoft and OpenAI. It is known that Microsoft has already invested billions of dollars in OpenAI.There are concerns about Microsoft taking control
The UK Competition and Markets Authority (CMA) said in a statement that the review will consider whether it resulted in a “seizure of control” that led to one party having significant influence over the other. Meanwhile, the regulator is examining competition issues related to the activities of the US software giant for the second time this year. The CMA will consider whether the Microsoft and OpenAI partnership creates a merger situation before deciding on any formal investigation.
“There have been a number of developments in the governance of OpenAI recently, some involving Microsoft,” the CMA said. In light of recent developments, it was stated that an ITC (Invitation for Comments) has been issued by the institution to determine whether the Microsoft/OpenAI partnership has led to a relevant merger situation and, if so, its potential impact on competition.
The CMA’s move follows an announcement in November that Microsoft, which has committed to investing more than $10 billion in OpenAI, would take a non-voting position on the company’s board. Microsoft’s appointment to OpenAI’s board of directors was a result of the artificial intelligence company’s firing and reinstatement of Sam Altman after a turbulent period. While OpenAI acquired the management company Microsoft, it also renewed other members.
It is not officially known how large Microsoft’s dominance over OpenAI is, but sources indicate that it owns 49 percent of the company. OpenAI’s AI models (including ChatGPT) all run on Microsoft’s Azure service.
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