UK Watchdog Examines Microsoft-OpenAI Partnership During Leadership Changes
The UK's Competition and Markets Authority (CMA) scrutinises whether Microsoft's substantial partnership with OpenAI could be construed as a merger, potentially impacting the broader artificial intelligence (AI) market. Microsoft, holding a 49% stake in OpenAI, claims to have maintained independence for both entities. However, recent turmoil at OpenAI has prompted the CMA to investigate the potential implications for market competition.
Last month, OpenAI, renowned for creating ChatGPT, faced internal upheaval when CEO Sam Altman was abruptly dismissed. Microsoft offered Altman a role leading a new advanced AI research team, only to reinstate him at OpenAI following an appeal from employees. This series of events drew attention to the influence of commercial competition on AI system development and its impact on the pace of technology.
The CMA is soliciting comments on whether the Microsoft-OpenAI partnership has resulted in a de facto "acquisition of control" or an effective merger, raising concerns about potential consequences for competition in the UK's AI market. The watchdog may launch a probe based on the feedback it receives.
Sorcha O'Carroll, Senior Director for Mergers at the CMA, emphasised that this invitation for comments is the initial step in the information-gathering process preceding any formal investigation.
Microsoft contends that its collaboration with OpenAI has spurred AI innovation and competition. Brad Smith, Vice Chair and President of Microsoft, clarified that the only change is the addition of a non-voting observer to OpenAI's board. This observer will have access to confidential information but won't participate in decisions such as director selection.
Microsoft, concurrently under scrutiny for its acquisition of Activision Blizzard, expressed commitment to cooperating with the CMA and providing all necessary information. Smith previously refuted claims that the OpenAI leadership shake-up was related to concerns about technology safety.
Addressing AI safety concerns, Smith recently stated that fears of AI surpassing human capabilities in the next year were unfounded, projecting a timeline of years to decades for the development of artificial general intelligence.
Sam Altman, a co-founder of OpenAI, secured significant funding from Microsoft, catapulting the organisation forward. In a Wall Street Journal interview, Helen Toner, one of the board members who participated in Altman's dismissal, cited a "lack of trust" as the reason behind the decision without elaborating on her interactions with Altman. Toner emphasised OpenAI's non-profit mission to ensure AI benefits all of humanity.