The UK Competition Watchdog has decided not to conduct a formal investigation into the partnership with the startups behind Microsoft’s AI chatbot, ChatGPT. The tech company, valued at 2.9TN (£2.3TN), claims it has a “material impact” on OpenAI but does not exercise control over it.
While the Competitive Markets Agency (CMA) acknowledged Microsoft’s significant financial support of OpenAI with a $13 billion investment, it concluded that Microsoft’s influence did not reach the threshold for an official investigation due to lack of control.
The CMA’s decision comes amidst concerns over the appointment of former Amazon UK boss Duggar as interim chairman. The CMA’s chief executive, Sarah Cardell, emphasized the need to maintain business trust without creating undue regulatory pressure from the UK government.
Joel Bamford, executive director of CMA’s merger, stated that as there was no change in control, the current partnership structure did not warrant review under UK’s merger regulations.
However, Bamford clarified that this decision does not imply that the partnership has been cleared of competitive concerns.
Following Sam Altman’s appointment as OpenAI’s CEO, the CMA initiated an investigation into OpenAI’s relations, noting a decrease in its reliance on Microsoft for computing power as a factor influencing their decision.
A Microsoft representative emphasized that the partnership with OpenAI supports competition, innovation, and responsible AI development. The decision to end the investigation was made after careful consideration of commercial realities.
Last year, the CMA chose not to investigate Amazon’s investment in AI companies, and similarly did not delve deeper into Microsoft’s partnerships with Mistral and Decleft.
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Microsoft recently invested $6.6 billion in OpenAI, contributing to a funding round that valued the company at $15.7 billion. OpenAI, run by a non-profit committee, has subsidiaries of for-profit entities, with Microsoft being the major supporter of these subsidiaries.
Despite concerns over Gurr’s appointment and the avoidance of negative economic impact, the CMA has focused on scrutinizing Big Tech, particularly during Gurr’s tenure. Alongside investigations into Google’s internet search dominance, the CMA is also exploring the effects of Apple and Google’s mobile platforms on consumers and businesses.
In January, Microsoft criticized the CMA’s cloud market survey, claiming it impedes tech companies from effectively competing with Google and Amazon in cloud computing services.
Source: www.theguardian.com
