Regulators aren’t convinced that Microsoft and OpenAI operate independently

Summary:

European Union regulators and other competition authorities are investigating Microsoft’s investment in OpenAI over concerns that Microsoft may be exerting control over OpenAI, potentially leading to distorted market dynamics and harmful competition behavior.

 

The investigations are prompted by governance changes at OpenAI, including the brief ousting and reappointment of CEO Sam Altman, and Microsoft’s increasing involvement in the company, such as appointing a non-voting observer to OpenAI’s board.

 

The inquiry also delves into OpenAI’s corporate structure, including its for-profit subsidiary in which Microsoft reportedly owns a 49% stake, and the nonprofit consumer rights group Public Citizen has called for an investigation into OpenAI’s nonprofit status.

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