EU Investigates Microsoft’s OpenAI Investment

The action is a part of Brussels’ attempts to ensure that its oversight can keep up with the rapidly developing field of artificial intelligence and prevent dominant firms from excluding rivals.

The European Union’s competition authority announced on Tuesday that it was investigating Microsoft’s investment in ChatGPT creator OpenAI to determine whether the deal should be looked into further in accordance with the bloc’s merger regulations.

“Checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the European Commission stated.

The action is a part of Brussels’ attempts to ensure that its oversight can keep up with the rapidly developing field of artificial intelligence and prevent powerful companies from excluding rivals.

“It is essential that these new markets stay competitive,” stated EU competition commissioner Margrethe Vestager, who is meeting this week with senior tech executives in California.

“We are closely monitoring AI partnerships to ensure they do not unduly distort market dynamics, and we are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries,” the spokesperson added.

Vestager is scheduled to meet with Google CEO Sundar Pichai and Apple CEO Tim Cook in addition to two OpenAI executives.

The AI revolution gained widespread traction with the November 2023 release of the ChatGPT chatbot, which at the time was the most widely used app.

Following an unsuccessful boardroom coup against CEO Sam Altman, Microsoft said last year that it will spend $13 billion in OpenAI in exchange for a seat on the board.

Last month, the British competition watchdog announced that it was investigating whether Microsoft and OpenAI’s collaboration resembles a merger.