Kopar Khairane

Details of Microsoft’s $10 billion OpenAI investment facing an EU probe

<p><strong>BRUSSELS:</strong> EU antitrust officials warned on Tuesday that Microsoft’s financial support for ChatGPT developer OpenAI might be governed by EU merger regulations, reiterating a warning issued by its UK counterpart in December.</p>
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<p>The massive American software company has said that it does not hold any shares in OpenAI, despite having pledged last year to spend over $10 billion in the company in exchange for a non-voting seat on the board.</p>
<p>As previously said, the European Commission was keeping a careful eye on events.</p>
<p>“The EU executive, which serves as the EU’s competition police, is investigating whether Microsoft’s investment in OpenAI could be subject to scrutiny under the EU Merger Regulation,” the EU executive said in a statement.</p>
<p>Microsoft said that by partnering with OpenAI in 2019, the two businesses had maintained their independence while promoting greater AI innovation and competition.</p>
<p>According to a Microsoft representative, “the only thing that has changed recently is that Microsoft will now have a non-voting observer on OpenAI’s Board.”</p>
<p>According to the Commission, some agreements made between major participants in the digital market and suppliers and inventors of generative AI are being examined for their potential to affect market dynamics. The firms’ names were omitted.</p>
<p>Additionally, the Commission on Tuesday extended the deadline for interested parties to submit comments on generative artificial intelligence and competitiveness in virtual environments until March 11.</p>
<p>Additionally, it made information requests on the two subjects to a number of sizable internet businesses.</p>
<p>“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” Margrethe Vestager, the EU antitrust head, said.</p>