Investment or M A ?Microsoft and OpenAI are targeted by EU antitrust authorities

Soon after the "palace fight" turmoil within OpenAI subsided, the relationship between OpenAI and Microsoft was targeted by the EU antitrust authorities.

Microsoft's $13 billion investment in OpenAI is facing an EU investigation, according to the latest reports. The European Commission said on Tuesday:

It is reviewing Microsoft's investment in OpenAI for compliance with the European Union's "merger and acquisition" rules. If the necessary conditions are found to be met, the regulator may begin a formal investigation into whether the arrangement is permitted.

However, in fact, Microsoft, as a traditional tech giant, has quickly established itself as a leader in the field of artificial intelligence by incorporating the most advanced AI technology into almost all products through a double deep binding with the technology and ownership of the most promising and powerful AI startups.

Previously, regulators in the United Kingdom, the United States and Germany and other countries have launched investigations into the relationship between the two, and the analysis pointed out that if the investigation continues to the end, it may even lead to the spin-off of the two companies or other structural or behavioral changes. Microsoft's U.S. stock price fell more than 0 percent in pre-market trading5%, currently down 033%。

The relationship between Microsoft and OpenAI has caused scrutiny from regulators around the world, and regulators in the United Kingdom, the United States and Germany have previously raised questions.

The UK's Competition and Markets Authority (CMA) said it was reviewing OpenAI's relationship with its main investor, Microsoft Corp., to clarify whether the partnership was a de facto "merger."

Germany's Federal Cartel Office previously noted that its partnership is subject to merger control rules, but will be re-examined if Microsoft increases its influence with OpenAI in the future. In addition, the U.S. Federal Commission has questioned the relationship between the two companies. Some analysts believe that:

If such an investigation continues to the end, the antitrust authorities believe that the investment transaction resulted in a lasting change in control or compliance with certain merger review criteria, and may even result in a spin-off or other structural or behavioral change between the two companies.

Max von Thun, European director of the Open Markets Institute, which focuses on strengthening antitrust laws, saidThe AI field will set off a wave of antitrust review:

Given the increasing concentration of the AI space, other regulatory investigations are likely to follow. Antitrust authorities must act quickly to investigate these deals, including dismantling them if necessary, to preserve competition and prevent this critical emerging technology from being monopolized.

Immediately after OpenAI's board fired Altman, Microsoft's stock price was immediately **. Microsoft CEO Nadella personally intervened in the negotiations and actively pushed Altman back to the company, and at one point he said that Microsoft was willing to hire Altman.

In order to circumvent antitrust scrutiny, Microsoft only holds a 49% stake in OpenAI and does not have direct control over the latter. A Microsoft spokesperson clarified later on the 8th:

While the details of our agreement remain confidential, it is important to note that Microsoft does not have control over OpenAI and is only entitled to share in the distribution of profits.