UK Antitrust Regulator Considers Merger Investigation into Microsoft's Collaboration with OpenAI

The Investigation

The UK's antitrust regulator is contemplating launching a merger investigation into Microsoft's collaboration with OpenAI, a deal worth billions of dollars. The regulator's examination will determine whether this partnership constitutes an "acquisition of control" and if it has resulted in a relevant merger situation, potentially impacting competition.

Microsoft's Response

Microsoft has responded to the investigation, clarifying that its role in the collaboration is that of a non-voting observer on OpenAI's board. While Microsoft's representative can attend board meetings and access confidential information, they do not have voting rights on important matters.

The Impact

With the regulator scrutinizing Microsoft's operations for the second time this year, questions are being raised about the potential consequences of this collaboration. The investigation aims to shed light on whether Microsoft's involvement in OpenAI's board has resulted in a relevant merger situation and its impact on competition.

Microsoft's Commitment

Brad Smith, Microsoft's Vice Chair and President, took to the X platform (formerly known as Twitter) to emphasize that the only change in the collaboration is Microsoft's non-voting observer status. This is distinct from acquisitions like Google's purchase of DeepMind in the UK. Smith expressed Microsoft's willingness to cooperate closely with the regulator throughout the investigation.

Investment in OpenAI and AI Infrastructure

According to a Bloomberg report, Microsoft has committed to investing over $10 billion in OpenAI starting in January 2023. Additionally, the company plans to launch a $3.2 billion investment in artificial intelligence (AI) infrastructure and training in the United Kingdom.