UK watchdog examining Microsoft’s ties to OpenAI

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The UK’s competition regulator is examining Microsoft’s relationship with OpenAI, a multibillion-dollar partnership that has become a template for Big Tech’s alliances with artificial intelligence start-ups.

The Competition and Markets Authority on Friday opened an “invitation to comment” for third parties, asking other companies and stakeholders whether “the partnership between Microsoft and OpenAI, including recent developments, has resulted in a relevant merger situation”.

The “information gathering process” is a necessary precursor to any potential CMA investigation into Microsoft’s investment of up to $13bn in OpenAI, which makes it the AI start-up’s largest backer and gives it certain exclusive rights to commercialise its technology for corporate clients.

Microsoft took a non-voting observer seat on OpenAI’s board following the recent period of upheaval at the maker of ChatGPT, when chief executive Sam Altman was ousted and then rehired.

This is a developing story

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