Microsoft's OpenAI investment could trigger EU merger review
The European Commission said it's “checking whether Microsoft's investment in OpenAI might be reviewable” under regulations covering mergers and acquisitions that would harm competition in the 27-nation EU.
Microsoft's multibillion-dollar investment in ChatGPT-maker OpenAI could trigger a European Union merger investigation, the bloc's executive branch said on Tuesday.
The European Commission said it's “checking whether Microsoft's investment in OpenAI might be reviewable” under regulations covering mergers and acquisitions that would harm competition in the 27-nation EU.
The review could lead to a formal investigation into whether the deal should be unconditionally cleared, allowed with concessions from the companies or blocked. Britain's antitrust watchdog opened a similar review last month.
Antitrust enforcers in the US also have signalled concerns about competition in the AI industry. The Federal Trade Commission in November approved new measures enabling it to more easily investigate AI products and services, noting that “AI can raise competition issues in a variety of ways, including if one or just a few companies control the essential inputs or technologies that underpin AI.”
OpenAI has received several rounds of funding from Microsoft, including an initial USD 1 billion in 2019 and a multibillion-dollar investment last year.
OpenAI's generative AI chatbot ChatGPT has captured world attention with its advanced capabilities, catapulting the San Francisco-based startup to the top ranks of AI companies. Generative AI systems like ChatGPT can spit out new text, images, videos or audio recordings based on prompts from users.
The European Commission, the bloc's top antitrust enforcer, is asking businesses and experts for input on any competition issues that they see in generative AI and has asked “several large digital players” — which it didn't identify — for information.
The commission is “also closely monitoring AI partnerships to ensure they do not unduly distort market dynamics,” the EU's antitrust enforcer, Margrethe Vestager, said in a press release.
Vestager is due to meet with OpenAI executives on a trip this week to the US, as well as Google CEO Sundar Pichai, Apple CEO Tim Cook and Nvidia CEO Jensen Huang.
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
10:26 PM IST