Source: Zhitong Finance
Author: Xu Ran
Microsoft's $13 billion investment in OpenAI will not be formally investigated by EU regulators.
According to reports, Microsoft's $13 billion investment in OpenAI will not be formally investigated by EU regulators, which dispels market concerns about a possible breakdown in the relationship between the two companies.
People familiar with the matter revealed that the European Commission has decided not to conduct a formal investigation into this cooperation because the cooperation does not constitute an acquisition, and Microsoft does not control the development direction of OpenAI.
In January of this year, the EU antitrust agency said it was reviewing the partnership between Microsoft and OpenAI. Although most deals will eventually be approved by Brussels regulators in accordance with EU merger regulations, the government will not hesitate to use the veto power if competition issues cannot be resolved within the specified period.
Microsoft declined to comment on the decision, but stated in an earlier statement that its partnership with OpenAI “fosters more artificial intelligence innovation and competition while maintaining the independence of both parties.” A European Commission spokesman said that in order to examine potential competition issues, supervisory authorities need to first determine whether there has been a “lasting change of control” between the two companies.
The core of the collaboration between Microsoft and OpenAI is to support the development of generative artificial intelligence around the world, which requires a large amount of computational power. For example, OpenAI has become a major customer of Microsoft's cloud business. Furthermore, the world's three largest cloud computing providers — Microsoft, Amazon, and Alphabet's Google — have all become active investors in artificial intelligence startups in recent years.
Microsoft has also been actively seeking partnerships with emerging artificial intelligence companies. For example, earlier this year, Microsoft announced a $16 million partnership with French technology company Mistral AI.
Microsoft's investment in OpenAI has drawn the attention of regulators including the European Union, the UK Competition and Markets Authority, and the US Federal Trade Commission. Microsoft CEO Satya Nadella (Satya Nadella) personally participated in the negotiations and expressed her willingness to personally hire OpenAI employees who wanted to leave their jobs, including Altman. After a series of management changes, the OpenAI board decided to reinstate Altman and added Microsoft as an unvoting observer.
This series of events has prompted regulators to review whether there has been a fundamental shift in the balance of power between the two parties, which could give one party more control or influence over the other. Meanwhile, the EU said it will view Microsoft's investment as part of a broader review of the anti-competitive risks that big tech companies may pose in the next generation of artificial intelligence technology.
Editor/Jeffy