UK Clears Microsoft’s OpenAI Investment
LONDON: Microsoft Corp.’s $13 billion investment in OpenAI Inc. has been cleared by the UK’s Competition and Markets Authority (CMA), ending months of regulatory scrutiny. The decision removes a significant uncertainty for Microsoft, which is also facing ongoing investigations into its cloud service offerings.
The CMA’s ruling, announced after approximately 14 months of examination, determined that the 2023 deal did not warrant a full merger investigation. The agency had been assessing whether the partnership granted either entity undue control or influence over the other.
“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 stated.
This decision comes shortly after the US Federal Trade Commission (FTC) raised concerns that the deal could extend Microsoft’s dominance in cloud computing into the emerging artificial intelligence market. Microsoft’s investment in OpenAI has given the company a head start in integrating AI across its core businesses, positioning it ahead of its Big Tech competitors.
The CMA’s scrutiny reflects a broader trend among global regulators to monitor Big Tech’s investments in AI, aiming to prevent market distortion and the concentration of power in a few dominant firms. The UK agency has previously expressed concerns about the “interconnected web” of investments and partnerships within the AI ecosystem, though it has already cleared Google’s partnership with AI firm Anthropic.
Last year, Microsoft and Apple Inc. withdrew plans to take board positions at OpenAI, a move highlighting the growing regulatory pressures.
