London
The UK’s competition regulator, the Competition and Markets Authority (CMA), has announced that it will investigate the partnership between Microsoft and OpenAI, the developer of ChatGPT. The CMA will focus on recent developments in the governance of OpenAI, particularly those involving Microsoft, to understand the potential impact on competition in the artificial intelligence (AI) market in the UK. In a statement, the CMA mentioned that recent changes in the leadership of OpenAI, including the removal and subsequent reinstatement of CEO Sam Altman, as well as Microsoft’s involvement, prompt the need for an investigation. The CMA will issue an Invitation to Comment (ITC) as the first step in gathering information to determine whether the Microsoft-OpenAI partnership, including recent developments, constitutes a relevant merger situation and its potential consequences for competition. The CMA emphasized the rapid scaling of AI across various use cases and markets, describing the current moment as pivotal in the development of transformative technology. The review aims to ensure sustained competition among AI developers to foster innovation, growth, and responsible practices in the sector. Additionally, the CMA will assess the need for open and effective competition in the deployment of powerful foundation models (FMs) across different downstream activities. This investigation comes at a time when the dynamics of the AI industry, including collaborations and leadership changes within major players like OpenAI and Microsoft, are under scrutiny for their potential impact on competition and market dynamics.
