EU to Check Whether Microsoft’s Investment in OpenAI Falls Under Merger Rules
Video Credit: Wibbitz Top Stories - Duration: 01:31s - Published
EU to Check Whether Microsoft’s Investment in OpenAI Falls Under Merger Rules
EU to Check Whether , Microsoft’s Investment in OpenAI , Falls Under Merger Rules.
On January 9, the European Union announced
an investigation to determine if Microsoft's
massive investment in OpenAI violates
the bloc's merger regulations.
On January 9, the European Union announced
an investigation to determine if Microsoft's
massive investment in OpenAI violates
the bloc's merger regulations.
TechCrunch reports that the news comes after turmoil
at OpenAI which saw the board of directors oust
the company's founder and CEO, Sam Altman.
.
TechCrunch reports that the news comes after turmoil
at OpenAI which saw the board of directors oust
the company's founder and CEO, Sam Altman.
.
The surprising decision triggered an
aggressive response by Microsoft, which
offered to hire Altman and any other OpenAI
staffers looking to leave the generative AI company.
The surprising decision triggered an
aggressive response by Microsoft, which
offered to hire Altman and any other OpenAI
staffers looking to leave the generative AI company.
Ultimately, OpenAI reversed the
board's initial decision, bringing Altman
back to lead the company.
A new board was then formed, which saw
the departure of members who had
voted in favor of removing Altman.
A new board was then formed, which saw
the departure of members who had
voted in favor of removing Altman.
The new board also includes Microsoft
representation for the first time in the form
of a non-voting, observer member.
TechCrunch reports that the high-profile upheaval,
combined with Microsoft's major 49% stake in
OpenAI, has garnered the attention of regulators.
At the close of 2023, the Competition and Markets Authority launched an investigation aimed
at deciding if OpenAI and Microsoft are in a , "relevant merger situation.".
Last fall, Germany's Federal Cartel Office
(FCO) concluded that the business arrangement
was not "currently" subject to merger control.
If Microsoft were to increase its
influence on OpenAI in the future,
it would have to be re-examined
whether a notification obligation
exists under competition law, Germany's Federal Cartel Office (FCO), via TechCrunch
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Credit: euronews (in English) Duration: 08:00Published
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