The British Competition and Markets Authority (CMA) has decided not to further investigate the close collaboration between Microsoft and OpenAI.
The British Competition and Markets Authority (CMA) announces that “Microsoft’s collaboration with OpenAI does not qualify for investigation under the merger provisions of the Enterprise Act 2002.” This decision comes after the collaboration between Microsoft and OpenAI was questioned in 2023. Microsoft invested significant amounts in OpenAI, took a seat on the newly formed board, and also offers many of OpenAI’s technologies. The question arose whether this collaboration resembled a merger, which would be detrimental to competition.
Collaboration or merger
In 2023, Sam Altman unexpectedly resigned as CEO of OpenAI. Not long after, the entire board of directors was dismissed, and Altman returned on board. Microsoft has also held a seat on the new board since then. This suggested that there was more between OpenAI and Microsoft than just a collaboration.
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British Market Authority will not investigate collaboration between Microsoft and OpenAI
Shortly after, the CMA announced an investigation into the collaboration between Microsoft and OpenAI, and whether or not it should be classified as a merger. Microsoft could, thanks to OpenAI’s technology, take a dominant position in the AI market. A merger would mean that other companies would have more difficulty accessing AI models.
Now the British market authority says that there is no change in control that gives rise to a relevant merger situation. “The CMA has concluded that no relevant merger situation has arisen and that it does not have jurisdiction to review the partnership in its current form.”