OpenAI turmoil: Decoding the boardroom drama amid Microsoft’s play for AI supremacy – Adgully.com
Microsoft’s collaboration with OpenAI is facing antitrust scrutiny in the US and UK following a recent boardroom conflict resulting in the CEO’s abrupt removal and reinstatement. Microsoft, a significant OpenAI supporter, gained a non-voting observer position in the startup’s board, with access to confidential information but no voting rights on key matters. The UK Competition and Markets Authority (CMA) is evaluating whether Microsoft’s investment might harm UK competition, while the US Federal Trade Commission (FTC) is conducting preliminary inquiries into potential antitrust violations. Microsoft, having committed over $10 billion to OpenAI, aims to lead in the AI revenue race against Google.
OpenAI, initially a non-profit, established a for-profit subsidiary in 2019, where Microsoft holds a 49% stake, although details remain disputed. Concerns about concentration in AI prompt calls for swift antitrust investigations, with EU regulators closely monitoring control issues. The CMA seeks comments from interested parties like Google, indicating the possibility of regulatory action. Even if a full probe is not pursued, the preliminary investigation will contribute to the CMA’s oversight of the rapidly evolving AI sector. Microsoft’s recent antitrust concerns, such as the Activision Blizzard acquisition, underscore the broader challenges facing the company in navigating regulatory landscapes.
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