EU Probes Microsoft's Relationship with OpenAI Over Competition Concerns

The European Commission investigates whether Microsoft's multi-billion dollar investment in OpenAI violates merger regulations, amidst wider scrutiny of tech partnerships in the AI and metaverse sectors.

EU regulators are investigating Microsoft's relationship with OpenAI, fearing that the tech giant may be covertly controlling the AI company.
The European Commission (EC) is examining whether Microsoft's investment in OpenAI, reported to be between $10 billion and $13 billion, violates merger regulations aimed at protecting competition.
Microsoft's OpenAI investments have already been the subject of another EC probe into the Windows maker, and the company also faces an antitrust allegation from a rival tech company in Europe.
Microsoft has denied having control over OpenAI, stating that their partnership has fostered more AI innovation and competition, while preserving independence for both companies.
Regulators are particularly interested in the potential competition issues stemming from tech companies partnering to develop generative AI and virtual world/metaverse systems.