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Microsoft, OpenAI Partnership Draws Scrutiny of UK's Competition Watchdog

OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella at an event.
⭕OpenAI CEO Sam Altman and Microsoft CEO ꦫSatya Nadella.

Justin Sullivan / Getty Images

Key Takeaways

  • The U.K.'s competition watchdog said it's collecting information to determine whether Microsoft's OpenAI partnership could impact competition.
  • After OpenAI CEO Sam Altman was ousted and reinstated by the ChatGPT maker, Microsoft was given a non-voting observer seat on the board.
  • The U.K. regulator noted that the partnership recently led to a "relevant merger situation" and requested comments from the two companies and the public.

The U.K.'s competition watchdog said it's looking into whether Microsoft's (MSFT) partnership with ChatGPT maker OpenAI could impact competition amid the 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) boom.

The Competition and Markets Authority (CMA) asked for comments from Microsoft, OpenAI, and the public after "recent developments" that may have "resulted in a relevant merger situation and, if so, the impact that the merger could have on competition in the UK."

Last month, Microsoft said it would 澳洲幸运5官方开奖结果体彩网:hire OpenAI founder and𝔍 CEO Sam Altman to lead a new AI team at Microsoft after he was ousted by OpenAI's board, 澳洲幸ꦜ运5官方开奖结果体彩网:as𒁃 well as absorb any resigning OpenAI employees. However, Altman was quickly 澳洲幸运5官方开奖结果体彩网:reinstated at OpenAI, and OpenAI granted Microsoft a non-voting observer seat on its board.

Microsoft is OpenAI's largest shareholder, and has invested billions into the startup, with the CMA noting the partnership "represents a close, multi-faceted relationship between two firms with significant activities."

Microsoft shares were 0.1% higher at $371.51 per share Friday as of about 11:40 a.m. ET, and have gained over 55% year-to-date.

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