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Microsoft, OpenAI Partnership Comes Under Antitrust Scrutiny

CIO Insider Team | Saturday, 9 December, 2023
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Microsoft's partnership with ChatGPT maker OpenAI is under US and UK antitrust scrutiny, after a startup and boardroom fight that led to the sudden ouster and return of CEO Sam Altman.

After last month's dramatic episode, Microsoft, the main backer of OpenAI, has been given a silent observer status within the company by a new three-member interim board. A Microsoft representative can attend OpenAI and board meetings and receive confidential information, but cannot vote on matters such as the election of directors.

OpenAI's discern is a non-earnings company, a kind of entity not often issued to antitrust scrutiny. In 2019 Microsoft owns a 49 percent stake, consistent with a source. According to reports, pronouncing information of its settlement had been confidential, that it does not personal any portion of OpenAI, and is entitled to a percentage of profits.

The software program large has devoted to pumping more than $10 billion into the startup, permitting it to take the lead in a race for AI sales with Alphabet's Google.

Antitrust authorities need to flow fast to research those deals, along with unwinding them if necessary, to keep opposition and save this crucial rising era from being monopolized

There have lately been some tendencies with inside the governance of OpenAI, a number of which worried Microsoft.

The US Federal Trade Commission (FTC) is likewise inspecting whether or not the funding may want to have violated antitrust laws, including that the inquiries have been initial and the business enterprise has now no longer opened a proper investigation.

Antitrust authorities need to flow fast to research those deals, along with unwinding them if necessary, to keep opposition and save this crucial rising era from being monopolized.

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