Microsoft’s OpenAI investment could face legal probe – EU regulators

European Union antitrust regulators say Microsoft’s financial support for OpenAI, the creator of ChatGPT, might be subject to EU merger rules, echoing a prior warning from its UK counterpart in December.

The U.S. software giant, Microsoft, pledged a substantial investment of over $10 billion in OpenAI last year, securing a non-voting position on the board. Microsoft maintains that it does not possess any ownership stake in OpenAI.

The European Commission had previously said it was following developments closely.

“The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the EU executive, which acts as the EU competition enforcer, said in a statement.

Microsoft highlighted that its 2019 partnership with OpenAI has not only spurred increased AI innovation and competition but has also safeguarded the independence of both companies.

“The only thing that has changed recently is that Microsoft will now have a non-voting observer on OpenAI’s Board,” a Microsoft spokesperson said.

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The Commission said some agreements agreed between large digital market players and generative AI developers and providers were being investigated for their impact on market dynamics. It did not name the companies.

On Tuesday, the Commission extended an invitation for feedback on competition in virtual worlds and generative artificial intelligence, allowing interested parties until March 11 to share their insights.

It also sent requests for information to several large digital companies on the two topics.

“We are inviting businesses and experts to tell us about any competition issues that they may perceive in these industries, whilst also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” EU antitrust chief Margrethe Vestager said.