The Competition and Markets Authority is seeking comment on whether the tech giant’s partnership with the San Francisco-based AI startup amounts to a merger that could substantially lessen competition, in advance of launching a formal investigation. (The Logic)
Talking point: Microsoft and OpenAI have an unusual relationship. Microsoft has reportedly invested up to US$13 billion in the ChatGPT maker, despite the fact it is controlled by a non-profit, has caps that limit possible investor returns and tells would-be investors that they should consider any funding to be “in the spirit of a donation.” Microsoft only recently added a non-voting director to OpenAI’s board, following CEO Sam Altman’s high-profile firing and rehiring. Still, Microsoft has embedded OpenAI’s products throughout its core businesses and has used the alliance to establish itself as an AI leader. Both companies deny their relationship amounts to a merger, the Financial Times reported.