Microsoft, OpenAI partnership draws the attention of U.K. regulators

Microsoft may be in for another fight with the U.K.’s Competition and Markets Authority over its close partnership with OpenAI. CMA representatives said today the agency is launching a merger probe in light of recent developments involving the two companies.

Microsoft has been in close partnership with the AI research company as it goes all in on Artificial Intelligence. OpenAI helped the Redmond tech giant create the ChatGPT AI-driven chatbot and other tools that are becoming more and more integrated into the Windows ecosystem.

Microsoft’s recent $10 billion investment into OpenAI, together with its involvement in the firing and eventual rehiring of OpenAI cofounder and CEO Sam Altman, has apparently raised some red flags with U.K. regulators. At least enough so to warrant this initial review. As per the CMA’s official statement,

The CMA is considering whether it is or may be the case that Microsoft’s partnership with OpenAI, or any changes thereto, has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

Back in November OpenAI’s board of directors decided to remove Altman as CEO citing that Altman “was not consistently candid in his communications with the board.”

Altman was ultimately reinstated to his position as head of OpenAI. Microsoft (which had earlier announced that it had hired Altman to lead a new AI research team there) gained a board seat in the reshuffle that ensued. Many perceive that Microsoft played a big part behind the scenes in Altman’s return to OpenAI.