The EU continues to investigate Microsoft’s cooperation with OpenAI

Brussels (Belgium) (AFP) – The EU will investigate the impact of Microsoft’s billion-dollar collaboration with ChatGPT software developer OpenAI on competition in the fast-growing artificial intelligence market, the head of the bloc’s antitrust watchdog said on Friday.

Published in: 28/06/2024 – 18:21Modified: 28/06/2024 – 18:19

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However, after an initial investigation, the European Commission concluded that the $13 billion tie-up does not mean that the American tech giant has gained control over OpenAI.

“The key question was whether Microsoft took control of OpenAI permanently. After careful analysis… we concluded that this was not the case,” said EU Competition Commissioner Margrethe Vestager.

“So we are closing this chapter. But the thing is that history is not over,” she said during a speech in Brussels.

Instead, the EU has now requested more information from Microsoft about the agreement between the two companies, Vestager said, “to understand whether certain exclusivity clauses may have an adverse impact on competition.”

She also said the EU had asked for more information on Google’s agreement with Samsung to pre-install its small version of the Gemini AI system on some of the South Korean giant’s devices.

Brussels wanted to understand the impact of so-called “employee takeovers,” Vestager added, a situation where a company acquires another company primarily to acquire key talent.

Earlier this year, Microsoft announced a deal to hire senior figures from OpenAI rival Inflection, including its chief executive, to lead its newly formed consumer artificial intelligence unit. However, unlike a merger, Inflection continues to operate as an independent company.

That means it will not face a traditional merger investigation that would give regulators the power to block the takeover.

The EU probe into Microsoft and OpenAI comes after a failed board coup last year against Sam Altman, the CEO of the company that makes ChatGPT, which Microsoft supported and even briefly hired.

US and UK regulators are also considering a partnership.

Microsoft welcomed the conclusion of the EU investigation.

“We appreciate the thorough analysis by the European Commission and its conclusion that Microsoft’s investment and partnership with OpenAI do not give Microsoft control over the company,” a Microsoft spokesperson said.

“We are ready to answer any additional questions the European Commission may have.”