FTC wants Microsoft's relationship with OpenAI under the microscope

Trending 2 months ago

Microsoft's OpenAI headaches ability not be activity abroad afterward letters that now the US Federal Trade Commission (FTC) is because an analysis into the Windows giant's advance in the company.

At question, should the FTC opt to accessible a academic examination, is whether any antitrust rules accept been broken. Despite the money caked into it over the years, OpenAI was founded as a non-profit in 2015, and Microsoft's advance does not aggregate to ascendancy of the company.

Microsoft arch communications administrator Frank X Shaw accent attempts to bedew bottomward industry allocution of a probe: "While capacity of our acceding abide confidential, it is important to agenda that Microsoft does not own any allocation of OpenAI and is artlessly advantaged to allotment of accumulation distributions."

The Register contacted the FTC for its appearance on the reports and will amend should we accept a response.

Microsoft has invested upwards of $10 billion in OpenAI to armamentarium the accretion ability bare to alternation AI models. To see a return, Microsoft is shoehorning ChatGPT into every bend of its portfolio. However, the contempo departure and consecutive return of OpenAI bang-up Sam Altman ashamed advisers in Microsoft HQ.

As such, the Windows bell-ringer parachuted a non-voting eyewitness into OpenAI's board.

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At the end of aftermost week, the UK's Competition and Markets Authority (CMA) launched a appointment to ask absorbed parties to animadversion on Microsoft's accord with ChatGPT developer, and if it could be construed as a alliance that potentially skews competition.

If so, the CMA will itself barrage an official inspection.

The FTC has already amorphous investigating OpenAI's ChatGPT over aloofness and reputational concerns. It is additionally no drifter to Microsoft. Despite the company's $69 billion accord to buy Activision Blizzard acutely activity advanced in October, the FTC has connected its attempts to disengage the merger.

In October, the UK's CMA gave Microsoft's $69 billion buy of Activision Blizzard the blooming light but criticized the approach active by Microsoft to advance through the deal.

"Businesses and their admiral should be in no agnosticism that the approach active by Microsoft are no way to appoint with the CMA," said the regulator's CEO, Sarah Cardell. ®