Microsoft’s investment in OpenAI may lead to an investigation in the European Union

Microsoft’s $13 billion investment in OpenAI risks becoming a pretext for a full-scale investigation by EU supervisory authorities, reports Bloomberg.

The European Commission is reviewing whether Microsoft’s financial participation in OpenAI may be subject to review under the EU’s merger control regime.

“Virtual worlds and generative AI are rapidly developing,” said Margrethe Vestager, the EU’s antitrust commissioner. “It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers.”

Microsoft has benefited significantly from its investment in OpenAI. The company has integrated OpenAI products into virtually all areas of its core business and has established itself as the undisputed leader in AI among large technology companies.

In December, the British competition authority announced that it would investigate Microsoft’s investment in OpenAI. It will investigate whether the balance of power between the two companies has changed to the extent that one of them has gained more control or influence over the other. Regulators in the United States are also interested in the companies’ cooperation.