The EU will drop its formal investigation into Microsoft's investment in OpenAI
The European Commission has decided that the cooperation between Microsoft and OpenAI does not merit a formal investigation, according to people familiar with the matter.
Since the EU's Digital Markets Act launched anti-monopoly measures against multiple technology giants last month, companies in related industries have been trembling and afraid that anti-monopoly investigations will fall on them.
According to the latest news, Microsoft's massive $13 billion investment in OpenAI will not be subject to a formal investigation by EU merger and acquisition regulators, which has also brought some relief to the industry.
At the end of last year, the senior management of OpenAI experienced a personnel shock, and Sam Altman of OpenAI was facing the situation of being "kicked out" of OpenAI. Subsequently, Microsoft CEO Satya Nadella personally spoke out on this matter and was preparing to poach Altman and several OpenAI employees.
The OpenAI board ultimately agreed to reinstate Altman's position, and subsequently appointed a temporary three member board and added Microsoft as a non voting observer. Therefore, the outside world has a deeper understanding of how close the relationship between the two companies is.
After this incident, the EU antitrust department stated in January this year that the strong connection between the two companies prompted them to consider whether they should initiate a formal review of Microsoft's involvement in OpenAI.
Now, insiders have revealed that the European Commission has decided that the cooperation between the two sides is not worth a formal investigation, as Microsoft has not achieved its acquisition goals and cannot control the development direction of OpenAI.
Microsoft did not comment on this. According to a previous statement released by Microsoft, its partnership with OpenAI "not only promotes more artificial intelligence innovation and competition, but also maintains the independence of the two companies."
The spokesperson for the European Commission stated that in order to examine potential competition issues, regulatory agencies need to first determine whether there has been a "lasting change of control" between the two companies.
Microsoft's massive investment in OpenAI has raised concerns among regulatory agencies in multiple countries around the world, including the European Union, the UK Competition and Market Authority, and the US Federal Trade Commission.
The UK Competition and Market Authority has stated that it will review whether the power balance between the two companies has fundamentally shifted, giving one party more control or influence over the other. The institution stated that it is considering launching an investigation to determine whether the transaction affects competition among UK companies.
In addition, the Federal Trade Commission is also conducting an early investigation into the cooperation between the two sides.
In order to avoid suspicion and invest in more artificial intelligence companies, Microsoft has recently announced multiple investment actions, including investing in French startup Mistral AI and making strategic investments in G42, headquartered in Abu Dhabi.
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