U.K. Clears Microsoft-OpenAI Partnership of Antitrust Concerns
The Competition and Markets Authority concluded that Microsoft's influence over OpenAI does not constitute a merger or harm competition in the AI sector.
- The U.K.'s Competition and Markets Authority (CMA) announced it will not launch a formal antitrust investigation into Microsoft's partnership with OpenAI.
- The CMA determined that Microsoft's investment and collaboration with OpenAI do not amount to a merger or give Microsoft control over OpenAI's commercial policies.
- Concerns over Microsoft's influence arose after its substantial financial backing of OpenAI and its involvement in the reappointment of OpenAI CEO Sam Altman in 2023.
- Recent adjustments in the partnership, including a renegotiated cloud computing agreement and waivers for OpenAI to build independent infrastructure, were noted as reducing Microsoft's control.
- Microsoft welcomed the CMA's decision, emphasizing that the partnership supports competition, innovation, and responsible AI development.