Competition authorities look into OpenAI-Microsoft partnership

On December 8, 2023, the UK’s Competition and Markets Authority (CMA) launched a consultation procedure in regard to the ties between Microsoft and OpenAI. The procedure is a preliminary step in a potential in-depth investigation for breach of antitrust laws.

Indeed, after raising 13 billion dollars, Microsoft took control of nearly half of the software publisher, ChatGPT. In exchange, the web giant received exclusive commercial rights on OpenAI’s generative AI models in the cloud.

According to the CMA, this “close and multifaceted” partnership between the two companies may actually be an acquisition in disguise. This would lead to “decreased competitiveness in the growth and use of fundamental [AI] models.” According to the CMA, “recent changes in the governance of OpenAI, some of which involve Microsoft,” triggered the procedure.

Indeed, in mid-November 2023, the OpenAI board fired CEO Sam Altman. Yet the latter got his job back just a few days later, under the pressure of Microsoft. The web giant also gained an observer’s seat on the startup’s future board.

The partnership is also raising eyebrows beyond the United Kingdom. The United States Federal Trade Commission (FTC) is leading its own investigation. As for European Union competition authorities, they are “very closely monitoring the OpenAI board situation,” according to a Commission spokesperson.