The UK’s Competition and Markets Authority (CMA) has announced the conclusion of its review into Microsoft’s relationship with OpenAI. The watchdog has decided not to escalate the matter into a full merger investigation.
The CMA stated that, based on available evidence, the partnership between the American tech giant and the AI firm behind ChatGPT does not meet the criteria for a merger inquiry. “In particular the CMA does not consider there has been a change of control by Microsoft from material influence to de facto control over OpenAI,” the authority explained in a Wednesday statement.
Microsoft was an early and significant investor in OpenAI, injecting billions of dollars into the San Francisco-based startup in its early stages. However, OpenAI has since attracted investment from other prominent players, including Japan’s Softbank and the semiconductor manufacturer Nvidia, particularly following ChatGPT’s success.
The CMA has been actively monitoring mergers and partnerships within the AI sector. This scrutiny follows a wave of investment flowing from major tech companies into generative artificial intelligence startups. It previously approved another Microsoft deal involving Inflection AI, as well as partnerships between chatbot maker Anthropic and Google and Amazon, respectively.
