Microsoft's OpenAI Investment Could Face EU Probe
January 09 2024 - 8:08AM
Dow Jones News
By Mauro Orru
The European Union is looking into whether the bloc could launch
a review of Microsoft's investment in ChatGPT maker OpenAI under
its merger regulations, a month after the U.K.'s Competition and
Markets Authority launched a probe into whether their partnership
could have an impact on competition.
The European Commission, the EU's executive arm, made the
disclosure on Tuesday as it sought input from interested parties on
the level of competition in virtual worlds and generative
artificial intelligence, and feedback on what competition law can
do to keep these new markets competitive.
"The European Commission is checking whether Microsoft's
investment in OpenAI might be reviewable under the EU Merger
Regulation," the commission said.
OpenAI started gaining traction in late 2022 after the release
of its ChatGPT chatbot. Microsoft entered the picture as a major
partner for OpenAI, agreeing to invest $13 billion in the company
in exchange for what is essentially a 49% stake in the earnings of
its for-profit arm.
Neither Microsoft nor OpenAI immediately responded to a request
for comment.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
January 09, 2024 07:53 ET (12:53 GMT)
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