Microsoft’s $13-billion (roughly Rs. 1,13,164 crore) investment into OpenAI Inc. was cleared by the UK’s antitrust watchdog, ending months of uncertainty over the tie-up.
The Competition and Markets Authority said that the 2023 deal doesn’t qualify for a full investigation under merger rules. The CMA said in 2023 it intended to look at whether the partnership gave either of the two firms more control and influence over another.
The decision, after around 14 months of scrutiny, removes one UK regulatory uncertainty for Microsoft, which faces a continued investigation into its cloud service offerings. It also comes weeks after the US Federal Trade Commission raised concerns that the deal could extend Microsoft’s dominance in cloud computing into the nascent artificial intelligence market.
“The CMA found that while Microsoft did acquire material influence over OpenAI in 2019, there has not been a change of control by Microsoft,” the CMA said in a statement.
Microsoft’s bet on OpenAI gave the software maker an early lead over its Big Tech rivals by integrating its products into virtually every corner of its core businesses.
Microsoft and Apple last year dropped plans to take board roles at OpenAI in a decision that underscored the growing regulatory scrutiny.
The CMA has been at the forefront of attempts by global regulators to ensure Big Tech’s investments into the AI industry don’t distort the market or lead to a handful of all-powerful firms. The UK agency voiced its concerns about what it called an “interconnected web” of partnerships and investments in the AI ecosystem. It previously cleared Google’s partnership with AI firm Anthropic.
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