Microsoft’s investment in OpenAI is facing an initial review from the UK’s CMA

0 6

Jaap Arriens | Nurphoto | Getty Images

The UK’s competition watchdog has opened a preliminary investigation at Microsoft major investment in OpenAI, the creator of ChatGPT, making it the first major regulator to raise potential competition concerns about the tech giant’s relationship with one of today’s most important AI companies.

The Competition and Markets Authority said in a statement on Friday that it is seeking comments from interested parties on whether Microsoft’s $10 billion investment in OpenAI has led to an “appropriate merger situation,” where two or more businesses have ceased or are not separate. due to trade.

The CMA said the speed at which AI is scaling is “unparalleled in economic history,” and that there are advances in so-called foundational models, which describe purposeful AI tools generics such as ChatGPT, represent a “significant moment in the development of this transformative technology. .”

The regulator said it will review whether Microsoft’s partnership with OpenAI has led to the acquisition of control – in other words, a situation where one company has substantial influence, de facto control, or more than 50% of the rights vote on another group.

“The invitation for comments is the first part of the CMA’s information-gathering process and comes before any stage 1 review is launched, which would only happen once the CMA has the information it needs. to receive from the partnership parties,” said Sorcha O’Carroll. director of unions at the CMA, said in a statement.

Microsoft President and Vice Chairman Brad Smith called, responding to the CMA’s statement Google’s 2014 on the British AI laboratory DeepMind, saying that Microsoft’s partnership with OpenAI is unlike that deal.

“Since 2019, we have created a partnership with OpenAI that has encouraged more AI innovation and competition, while preserving the independence of both companies,” Mac said. ‘ Smith at Microsoft in a statement on Friday.

“The only thing that has changed is that Microsoft will now have a non-voting observer on the OpenAI Board, which is very different to acquisitions such as Google’s purchase of DeepMind in the UK. We work closely with the CMA to provide all. information he needs.”

Separately, the CMA is reviewing the AI ​​industry to assess the risks and opportunities of foundational models, and what principles need to be applied to the technology to prevent disruption competition and consumer protection. The European Union is also expected to agree on landmark rules designed to regulate AI technology later on Friday.

Leave A Reply

Your email address will not be published.