OpenAI co-founder Sam Altman announced in November that Microsoft (NASDAQ:
MSFT) A non-voting seat on the board of an artificial intelligence (AI) research company has attracted the attention of UK antitrust regulators. Considering investigation A multi-billion dollar collaboration between both parties.
in statement On December 8, the Competition and Markets Authority (CMA) asked Microsoft and OpenAI for comment on recent developments that it believes may be in breach of anti-competition laws.
The CMA also asked interested third parties to share their views on the latest partnership and whether it constitutes a ‘control acquisition’.
Industry players are expected to comment on the potential impact of such a merger on the UK AI ecosystem. The Invitation to Comment (ITC), designed as an information-gathering stage, is widely considered a precursor to a formal investigation by the CMA, with the regulator seeking views from relevant stakeholders, academics and affected parties. .
“The invitation to comment is the first part of the CMA’s information-gathering process and takes place before it begins its stage one investigation. This will only take place once the CMA has received the necessary information from the partnership parties.” Sorcha O’Carroll said. , CMA Senior Director of Mergers.
Recent developments in OpenAI’s corporate governance, including an investment by Microsoft, the provision of cloud services, and a technology partnership between the two companies, may have prompted the CMA to launch its investigation. Microsoft’s addition to OpenAI’s board is seen as a turning point, with the CMA seeking clarification on the exact details of the agreement.
“The CMA will consider whether the partnership has resulted in the acquisition of control, meaning that one party has significant influence, de facto control or 50% or more of the voting rights in another entity. “The control of one entity over another that is subject to review to determine whether it has changed its nature or caused a change in its nature,” the statement reads.
Microsoft has since clarified the scope of its relationship with OpenAI, saying it has no voting rights on OpenAI’s board of directors and only observes its proceedings.
The CMA will continue to work with the ITC to investigate the impact of AI models and other emerging technologies on consumer protection and competition. Meanwhile, Microsoft is investing in a multi-billion dollar initiative to improve the UK’s AI infrastructure after being targeted by the CMA following the Microsoft and Activision fiasco.
A strong stance against AI monopoly
The CMA has repeatedly made decisions to clamp down on potential breaches of existing antitrust laws by AI developers. In September, the CMA called on the UK government to propose a blueprint for accountability and transparency and impose waterproof AI guardrails.
The CMA’s concerns include the risk of large companies controlling small AI developers, misinformation, privacy violations and the slow pace of development.
“That is why today we have launched a wide-ranging engagement program to propose these new principles and ensure that the development and use of the underlying model evolves in a way that promotes competition and protects consumers. ,” said Sarah Cardel, chief executive officer of CMA.
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