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Microsoft's Investment in OpenAI May Face EU Antitrust Scrutiny

Published on Jan 10, 2024
Image Credit: Marco

The European Commission, the EU's antitrust regulator, has announced that it is considering subjecting Microsoft's financial support for ChatGPT developer OpenAI to EU merger and acquisition regulations. In a statement, the European Commission stated that it is currently evaluating whether Microsoft's investment in OpenAI falls under the purview of EU merger rules.

Reports indicate that Microsoft is the primary investor and a significant partner of OpenAI. Since OpenAI's inception, Microsoft has invested approximately US$13 billion in the company and currently holds a 49% share.

Information suggests that as early as December of the previous year, both the British Competition and Markets Authority (CMA) and the U.S. Federal Trade Commission (FTC) began investigating Microsoft's $13 billion investment in OpenAI. These antitrust agencies are examining the investment and the relationship between the two entities to determine whether it violates antitrust laws in their respective countries.

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