EU and UK Probe Microsoft's $13B OpenAI Investment over Antitrust Concerns
January 10, 2024The European Union and the UK's competition watchdog are investigating Microsoft's $13 billion investment in OpenAI over potential antitrust violations.
The investment strengthens Microsoft's dominance in the AI field, surpassing competitors like Google.
Microsoft gained a non-voting board seat at OpenAI, causing internal conflicts within the company.
The investigations aim to ensure that AI markets remain competitive and that major players do not hinder competition.
The European Commission is examining agreements between digital market players and AI developers to assess their impact on market dynamics.
Concerns have been raised about hindering collaboration with OpenAI and the firing and re-hiring of OpenAI's CEO.
The EU is inviting tech companies to report competition issues in the AI industry, with stakeholders having until March 11 to submit their responses.
The outcome of the investigation is still unknown, but a workshop may be organized in the second quarter of 2024 to further explore the subject.
If irregularities are found, it could have serious legal consequences and impact Microsoft's AI strategy.
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