The Daily Telegraph - Saturday
Microsoft faces fresh clash with regulator over ChatGPT deal
BRITAIN’S competition watchdog is facing a fresh battle with Microsoft over its plans to scrutinise the tech giant’s ties to ChatGPT-maker OpenAI.
The Competition and Markets Authority (CMA) said it was seeking industry views on the deal between the US tech companies as it investigates their role in the development of artificial intelligence (AI) technology.
Just months ago Microsoft attacked the CMA over its initial decision to block the $69bn (£55bn) takeover of gaming company Activision, which was later reversed.
The CMA said it is involved in an “information gathering process” as it considers launching a formal inquiry into whether the relationship between Microsoft and OpenAI harms competition in Britain.
Microsoft is a major investor in OpenAI, pledging up to $13bn in investment while providing it with critical computing supplies. OpenAI launched ChatGPT last year, which has since sparked a surge of interest in AI technology, particularly from businesses.
The CMA said it would examine whether Microsoft had “de facto” control over OpenAI. As a shareholder in OpenAI, Microsoft recently secured a non-voting board seat after directors tried to oust chief executive Sam Altman in a coup.
Microsoft opposed the move and ultimately helped engineer his return.
During its previous spat with the CMA, Microsoft accused the regulator of damaging Britain’s appeal to foreign investment. Relations subsequently improved after the regulator waved through the Activision deal.
A Microsoft spokesman said: “Since 2019, we’ve forged a partnership with OpenAI that has fostered more AI innovation and competition, while preserving independence for both companies.
“The only thing that has changed is that Microsoft will now have a nonvoting observer on OpenAI’s Board.”
Separately, Bloomberg reported that the Federal Trade Commission, the US competition regulator, is investigating Microsoft’s relationship with OpenAI.
The tech giant did not notifiy the regulator about its investment in OpenAI, owing to its non-profit status.