EU greenlights Microsoft’s $13 billion investment in OpenAI, deal still under the radar

Could be investigated by UK’s Competition and Markets Authority

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Published onApril 19, 2024

published onApril 19, 2024

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In a major relief for Microsoft, EU antitrust regulators have decided not to proceed with a formal probe into the $13 billion investment the Redmond-based tech giant made in OpenAI.

This comes after the regulators came to the conclusion that the $13 billion Microsoft put into OpenAI is an investment, not an acquisition and that the former doesn’t control the latter, negating the need for an investigation, at least for now.

In an email toReuters, an EU spokesperson said,

The investment came under the scanner after sudden reshuffling at OpenAI, which led to its CEO,Sam Altman, being fired. At the time, Microsoft’s CEO,Satya Nadella, spearheaded the negotiations that ultimately led toSam Altmangetting reinstated as the CEO of OpenAI.

Reports suggest thatMicrosoft wantedSam Altmanto lead the AI team, but after his return to OpenAI, the tech giant went ahead withMustafa Suleyman.

Microsoft isn’t completely off the hook yet. A report inReuterssuggests that with pressure mounting, Microsoft could still face an investigation by the EU antitrust regulator.

Besides, the investments are also under the radar of authorities in other regions, as well as theCompetition and Markets Authorityin the UK. The latter is primarily concerned with the deal’s impact on market competition.

Undeterred by these developments, Microsoft’s push for generative AI continues globally, fromintroducing AI in manufacturingto its$1.5 billion investment in G42targeting Middle Eastern and African regions tofunding AI-based startupsworldwide.

Besides, to aid its expansion plans,Microsoft is planning to acquire 1.8 million AI chipsto power the infrastructure.

What do you think about the EU’s decision to greenlight Microsoft’s investments in OpenAI? Share with our readers in the comments section.

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EU greenlights Microsoft’s $13 billion investment in OpenAI, deal still under the radar