UK regulator looks into Microsoft pact with OpenAI

LONDON: The UK’s competition regulator will look into the partnership between Microsoft and OpenAI, the developer of ChatGPT, including recent developments, to understand the impact the merger could have on competition in the UK.

The Competition and Markets Authority (CMA) is examining whether Microsoft’s association with OpenAI could affect the artificial intelligence (AI) market. “The Invitation to Comment (ITC) is the first part of the CMA’s information gathering process and comes in advance of any launch of a formal phase 1 investigation,” the market watchdog said in a statement.

There have recently been a number of developments in the governance of OpenAI, some of which involved Microsoft. In light of these developments, the CMA is now issuing an ITC to determine whether the Microsoft /OpenAI partnership, including recent developments, has resulted in a relevant merger situation and, if so, the potential impact on competition. Last month, OpenAI board sacked CEO Sam Altman in a dramatic move, Later, Microsoft chairman-CEO Satya Nadella offered him a job to lead its advanced AI research.