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The European Commission said on Tuesday that it\u2019s examining whether Microsoft\u2019s investment in OpenAI might be reviewable under the bloc\u2019s merger rules. If found to reach the necessary conditions, regulators may start a formal probe into whether the arrangement should be allowed. The EU move follows a similar step by the UK\u2019s Competition and Markets Authority.\u00a0<\/p>\n
Microsoft has benefited richly from its investments, totaling as much as $13 billion, in OpenAI. By integrating OpenAI\u2019s products into virtually every corner of its core businesses, the software giant very quickly established itself as the undisputed leader of AI among big tech firms. Rival Alphabet Inc.\u2019s Google has been racing to catch up ever since.\u00a0<\/p>\n
The recent firing \u2014 and subsequent rehiring \u2014 of Sam Altman as chief of OpenAI exposed how inextricably linked the two companies have become. Microsoft shares fell immediately after OpenAI\u2019s board ousted Altman. Microsoft chief executive officer Satya Nadella personally helped negotiate and advocate for his return to the company \u2014 at one point offering to hire Altman himself, along with other employees at OpenAI who wanted to leave.<\/p>\n
On Tuesday, the EU\u2019s antitrust enforcers also announced a call for feedback on competitive issues that may arise in the field of generative artificial intelligence and virtual worlds.\u00a0<\/p>\n
\u201cWe are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics.,” a statement from Margrethe Vestager, the EU\u2019s competition commissioner, read.\u00a0<\/p>\n
The Brussels-based commission added that venture capital investment in AI in the EU is estimated at more than \u20ac7.2 billion in 2023 and the size of the virtual worlds market in Europe is estimated to have reached more than \u20ac11 billion in 2023. The exponential growth is likely to have a major impact on how businesses compete, the commission said. \u00a0<\/p>\n
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