The European Commission is considering reviewing Microsoft's investment in OpenAI, the company behind the maker of ChatGPT, under European Union (EU) merger regulations. Microsoft owns a 49% stake in OpenAI, and this involvement could be the focus of scrutiny in Europe.
The European Commission Is Investigating Competition in the Digital World and AI
On January 9, the European Commission announced on the EU website that it was investigating competition in cyberspace and artificial intelligence (AI). They also said they had requested information from several large digital players, although they did not mention specific names.
The commission is also examining several agreements between large players in the digital market and generative AI developers and providers. However, specific details about which companies are being reviewed were not disclosed.
Also read: What is ChatGPT, everything you need to know for beginners
Microsoft's investment in OpenAI has not gone unnoticed
Regarding Microsoft's investment in OpenAI, the European Commission specifically stated that it is examining whether the investment is eligible for review under EU merger regulations.
Microsoft has invested around 13 billion US dollars in OpenAI to get a stake of 49%. While this isn't strictly a merger, Microsoft's recent involvement in decisions regarding OpenAI CEO Sam Altman may be considered an important factor.
Altman was fired and then rehired as CEO after several changes in company leadership.
In the midst of this situation, Microsoft participated by offering Altman a leadership position.
Even though the European Commission is threatening to review Microsoft's investment, that doesn't mean there will be any regulatory or legal action. Microsoft itself has previously had dealings with merger law in Europe, regarding their acquisition of Activision-Blizzard, which was finally completed in October 2023.
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