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10mo ago

EU Intensifies Scrutiny of Microsoft-OpenAI Partnership

Regulators question exclusivity clauses and potential anti-competitive effects in the AI sector.

The OpenAI logo is displayed on a cell phone with an image on a computer monitor generated by ChatGPT's Dall-E text-to-image model, Dec. 8, 2023, in Boston. The European Union is escalating its scrutiny of the artificial intelligence industry, including taking a fresh look into Microsoft’s multibillion-dollar partnership with OpenAI. The bloc started reviewing the multibillion-dollar deal last year to see whether it broke EU merger rules but dropped it after concluding Microsoft hadn’t gained control of OpenAI. (AP Photo/Michael Dwyer, File)
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Overview

  • The European Commission concluded that Microsoft's investment in OpenAI does not constitute a merger.
  • Regulators are seeking more information on the exclusivity of Microsoft's cloud services to OpenAI.
  • Google's AI deal with Samsung is also under investigation for potential market dominance issues.
  • The EU is examining 'acqui-hires,' where companies acquire others primarily for their talent.
  • US and UK regulators are conducting similar probes into AI partnerships.