UK Watchdog Clears Microsoft-OpenAI Partnership

The UK's Competition and Markets Authority (CMA) has concluded its review of Microsoft's partnership with OpenAI, determining no merger investigation is required. Microsoft was an early investor and supporter of OpenAI, although the startup has since attracted additional major backers including Softbank and Nvidia.

The United Kingdom's Competition and Markets Authority declared on Wednesday that it has concluded its examination of Microsoft's collaboration with OpenAI. The regulatory body announced its decision to drop a potential review, asserting that the partnership does not necessitate a comprehensive merger investigation according to UK merger standards.

The CMA's decision was informed by a lack of evidence indicating a change in control from Microsoft's material influence to de facto control over OpenAI. Microsoft had been a prominent initial investor, infusing substantial financial support into the San Francisco-based company, famous for developing ChatGPT.

OpenAI, however, has since expanded its investment pool, securing funds from significant corporations such as Japan's Softbank and Nvidia, correlating with its success. The CMA has been increasing its oversight of AI-related deals amid a surge of investments from major technology firms into generative artificial intelligence. Previous approvals by the CMA include Microsoft's deals with Inflection AI and collaborations involving Google and Amazon.

(With inputs from agencies.)