Digital Convergence … 12/08/2023 … Digital Convergence
US and UK regulators are scrutinizing Microsoft’s multibillion-dollar investment in ChatGPT-developed OpenAI, according to reports published on Friday. The Competition Authority (CMA), the United Kingdom’s CADE, raised concerns about Microsoft’s potential dominance of OpenAI, a non-profit organization, outside of antitrust law.
“Recently, there have been several developments in the governance of OpenAI, some of which involve Microsoft,” the CMA said in a statement. “In light of these developments, the CMA has issued an invitation to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a material merger situation and, if so, the potential impact on competition.” on the contract until January 3 before deciding whether to launch a formal investigation.
Bloomberg also reported that the Federal Trade Commission in the US is investigating the details of the partnership. The investigation is at an early stage. One of the goals is to understand whether the software gives Microsoft, which has a 49% stake in OpenAI, greater control. Microsoft has pledged to invest more than US$10 billion in OpenAI to stay at the forefront of artificial intelligence development and stay ahead of rivals AWS and Google.
Microsoft recently took a non-voting observer seat on OpenAI’s board in a shakeup that followed the high-profile firing and hiring of its CEO, Sam Altman, Bloomberg reported. Microsoft CEO Satya Nadella Altman was reportedly instrumental in brokering the negotiations that led to OpenAI’s comeback.
Source: Reuters Agency
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