Over the past few years, Microsoft has successfully skirted some of the spotlight on the market power of other technology giants, such as Apple and Google.
However, as AI becomes a target for global regulators and lawmakers, Microsoft’s growing partnership with the leading AI firm and creator of ChatGPT is bringing renewed attention.
The Federal Trade Commission (FTC) is examining the nature of Microsoft’s investment in OpenAI, Bloomberg News reported.
The U.K. Competition Market Authority (CMA) also launched an initial review last week to see if Microsoft’s growing relationship with OpenAI “resulted in a relevant merger situation,” and if that change would lessen competition.
Microsoft invested billions of dollars in OpenAI and has incorporated ChatGPT into Microsoft services. The lines between the two companies, however, have been blurred in the aftermath of the tumultuous firing and rehiring of OpenAI co-founder and CEO Sam Altman.
“The relationship between Microsoft and OpenAI existed prior to that. But that debate, that very public dispute, showed really the extent of Microsoft’s control over OpenAI,” said Lee Hepner, legal counsel at the American Economic Liberties Project, a nonprofit that supports aggressive antitrust enforcement.
The OpenAI board announced Altman was ousted as CEO on Nov. 17, a Friday. By the following Monday, Microsoft announced it would be hiring Altman to lead an AI research team.
Altman returned to the AI startup just a few days later — with the blessing of Microsoft CEO Satya Nadella — after hundreds of OpenAI employees threatened to quit if he was not reinstated.
One week later, OpenAI announced Microsoft would have a nonvoting position on its board of directors.
“The question on everyone’s minds here is, ‘Who absolutely controls OpenAI?’” Hepner said.
Read more in a full report at TheHill.com.
