The UK’s Competition and Markets Authority (CMA) has approved Microsoft’s $13 billion investment in OpenAI after a 14-month investigation, determining no further investigation is needed under merger rules. The CMA concluded that Microsoft does not transition from material influence to de facto control over OpenAI, meaning the partnership won’t be referred under the Enterprise Act of 2002. Microsoft holds approximately 49% of OpenAI and has invested over $14 billion since 2019. However, the investment is still under scrutiny by the US Federal Trade Commission (FTC) for potential dominance in the AI sector, akin to Microsoft’s cloud computing influence.
The UK’s Competition and Markets Authority (CMA) has given the green light to Microsoft’s $13 billion investment in OpenAI after a thorough 14-month investigation. The finding indicates that this new investment by Microsoft does not warrant further review under merger regulations, as neither entity would exert additional control over the other.
Specifically, the CMA concludes that Microsoft has not transitioned from having material influence to de facto control over OpenAI. Consequently, the Partnership will not be escalated under section 22 of the Enterprise Act 2002 (the Act). – CMA press release
Microsoft is estimated to own 49% of OpenAI and has invested upwards of $14 billion in the artificial intelligence research company since 2019. The latest investment round by Microsoft in OpenAI is currently under scrutiny from the US Federal Trade Commission (FTC) due to concerns about potential dominance in the AI space, reminiscent of Microsoft’s stronghold in cloud computing.
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