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Microsoft OpenAI antitrust review overview:
- Who: The Competition and Markets Authority is reviewing a decision by Microsoft to join the board of the AI research and deployment company OpenAI.
- Why: The antitrust authority is trying to determine whether Microsoft joining the OpenAI board could lead to competition concerns if the former were to gain material influence over the ChatGPT developer.
- Where: The CMA is the competition regular in the UK.
The Competition and Markets Authority (CMA) said last week that it will be reviewing a decision by Microsoft to join the board of ChatGPT developer OpenAI.
UK’s antitrust authority said it will be determining whether the inclusion of Microsoft on OpenAI’s board could lead to competition concerns, in the event Microsoft were to gain material influence over the AI research and deployment company.
The CMA is currently inviting views from the parties and any interested third parties on whether they think a partnership between Microsoft and OpenAI could harm competition in the UK.
The antitrust authority said it will be considering whether the partnership between Microsoft and OpenAI — including recent developments — has resulted in a “relevant merger situation,” under the Enterprise Act 2002, and, if so, what impact it would have on competition in the UK.
“The Invitation to Comment (ITC) is the first part of the CMA’s information gathering process and comes in advance of any launch of a formal phase 1 investigation,” the antitrust authority said, in a news release.
OpenAI CEO says Microsoft is joining its board as a ‘non-voting observer’
Sam Altman, OpenAI’s CEO, said late last month that Microsoft is joining the company’s board only as a “non-voting observer,” however its role would give the company access to OpenAI’s data, reports Law360.
Microsoft has reportedly invested in excess of $10 billion in OpenAI since 2019 and has a total ownership stake of 49% in the company.
The CMA, meanwhile, stressed the need for “sustained competition” between AI developers to “help deliver innovation, growth and responsible practices across the sector” as well as “open and effective competition in the deployment of FMs across a range of downstream activities.”
“As part of its ongoing work in this area, the CMA has been closely monitoring the impact of partnerships and strategic agreements which could result in a weakening of competition in the development or use of (foundation models),” the agency said.
Individuals interested in submitting comments about Microsoft’s decision to join the OpenAI board will have until the beginning of January to do so, reports Law360.
A class action lawsuit was filed against OpenAI and Microsoft last month over claims the two companies stole the work of nonfiction authors to train their AI models, without providing any compensation or getting permission from the authors to do so.
What do you think of Microsoft’s decision to join the OpenAI board? Let us know in the comments.
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