The UK’s Competition and Markets Authority has ended its investigation into the partnership between Microsoft and OpenAI, concluding that despite significant investments by Microsoft, the partnership remains unchanged.
UK Competition Watchdog Drops Microsoft–OpenAI Probe
The UK’s Competition and Markets Authority (CMA) has ended its investigation into the partnership between Microsoft and OpenAI, concluding that despite significant investments by Microsoft, the partnership remains unchanged.
In 2019, Microsoft invested $1 billion in OpenAI, a leading artificial intelligence (AI) research organization.
This partnership aimed to accelerate the development of advanced AI technologies.
The collaboration focuses on creating more intelligent and conversational AI models, such as language translation and text generation tools.
OpenAI's AI systems are integrated into Microsoft Azure cloud services, enabling businesses to leverage AI capabilities seamlessly.
This strategic alliance has driven significant advancements in AI research and innovation.
Changes in Leadership at CMA
The decision to drop the probe comes after a year-long investigation sparked by turmoil surrounding OpenAI’s leadership. In December 2023, Microsoft had put pressure on OpenAI to re-employ its boss ‘Sam Altman‘, who was fired and then rehired. The CMA opened an investigation into whether Microsoft’s relationship with OpenAI had changed.
OpenAI's leadership team is comprised of experienced technologists and entrepreneurs.
The company's CEO, Sam Altman, co-founded Loopt and was previously president of Y Combinator.
Dario Amodei serves as the company's CTO, bringing expertise in AI research and development.
Mira Murati is OpenAI's Chief Technology Officer, focusing on AI safety and governance.
The team's collective experience drives innovation and responsible AI development.
Investigation Findings
The CMA has concluded that Microsoft ‘exerts a high level of material influence’ over OpenAI‘s commercial policy without fully controlling it. As a result, the partnership does not qualify for review under the UK’s merger control regime.
However, critics argue that the decision is linked to the changed political environment at the CMA. In January, the government removed the then-chair of the CMA, ‘Marcus Bokkerink‘, and replaced him with ‘Doug Gurr‘, former boss of Amazon UK. Foxglove co-executive director ‘Rosa Curling**’ said: ‘This is a bad sign that Big Tech has successfully convinced the prime minister to defang our competition regulator.‘
Government’s Priorities
The government has instructed regulators to suggest ways of stimulating economic growth and prioritizing ‘pro-growth and pro-investment interventions.’ In February, the CMA received instructions from the government to take a less interventionist approach to protecting competition.
Industry Reaction
Microsoft welcomed the CMA’s conclusion, stating that its partnership with OpenAI promotes competition, innovation, and responsible AI development. Competition lawyer ‘Chloe Birkett‘ said: ‘The CMA will be taking a less interventionist approach to protecting competition… but this does not mean the CMA** will approve every deal presented to it without question.’
