FTC Eyes Microsoft's Multi-Billion Dollar OpenAI Investment for Antitrust Violations
US regulators consider a formal investigation into whether Microsoft's massive financial ties to OpenAI violate antitrust laws, mirroring similar scrutiny in the UK.
The US Federal Trade Commission (FTC) considers launching a formal investigation into Microsoft's multi-billion dollar investment in OpenAI to determine if the partnership violates antitrust laws. Although Microsoft pours vast resources into the AI startup, company executives insist the deal does not constitute ownership or control of the organization.
Microsoft injects upwards of $10 billion into OpenAI to fund the massive computing power required for AI model training, and aggressively integrates ChatGPT across its entire software portfolio. The recent leadership turmoil at OpenAI prompts Microsoft to place a non-voting observer on the startup's board to protect its significant financial interests.
This regulatory scrutiny extends beyond US borders, as the UK's Competition and Markets Authority simultaneously launches a consultation to decide if Microsoft's relationship with OpenAI essentially functions as a merger that harms market competition. These mounting investigations add to the FTC's existing privacy probes into ChatGPT and its ongoing attempts to unravel Microsoft's Activision Blizzard acquisition.