Probe Into Microsoft’s $13 Billion OpenAI Investment Launched in 2023

The U.K. antitrust regulator won’t open an investigation into a partnership between computing giant Microsoft and artificial intelligence company OpenAI.
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The U.K. Competition Market Authority in December 2023 launched a preliminary review of Microsoft’s interest in OpenAI after Microsoft invested $13 billion in the ChatGPT maker and received a nonvoting seat on the OpenAI board (see: UK Market Regulator Reviews Microsoft’s Interest in OpenAI).
Microsoft’s partnership with OpenAI was likely never stronger than when the British antitrust authority announced its review, with Microsoft playing a key role in reinstating OpenAI CEO Sam Altman as CEO after a brief ouster, embedding ChatGPT into its products and its Azure cloud computing platform serving as OpenAI’s exclusive cloud provider.
The CMA’s review investigated if the Microsoft exerted material influence over OpenAI.
“The CMA does not believe that it is or may be the case that the partnership, in its current form, gives rise to a relevant merger situation,” it said on Wednesday. “In particular, the CMA does not consider there has been a change of control by Microsoft from material influence to de facto control over OpenAI.”
Microsoft is reportedly entitled to 75% of OpenAI profits until the computing giant recoups its investment in the company. The relationship may have cooled, with Microsoft giving up its board seat in July 2024 and OpenAI turning to Oracle for additional computing resources that Microsoft reportedly was hesitant to give. The two companies in January announced that OpenAI can turn to other cloud providers under a new model where Microsoft has right of first refusal.
The U.K. regulator has raised concerns about competition in the foundation models market, which is currently dominated by Google, Amazon, Microsoft, Meta and Apple – collectively dubbed the GAMMA firms.
These companies are ubiquitous across the foundational model value chain, giving them an edge over compute or data resources capabilities, which risks promoting a “winner takes all” dynamic, CMA Chief Executive Sarah Cardell said previously (see: UK Markets Authority Warns of AI Market Capture by Big Tech).
The agency also halted a similar review of the relationship between Anthropic and Google Alphabet and Amazon.