UK Halts Competition Review of Microsoft-OpenAI Deal

LONDON — On Wednesday, the UK’s Competition and Markets Authority announced it has decided to cease its investigation into the strategic partnership between Microsoft and OpenAI. The regulatory body has assessed that there is no need for a more thorough examination under the nation’s merger regulations.

Based on “available evidence,” the authority concluded that the collaboration between the major U.S. technology company and the creators of ChatGPT does not meet the criteria for merger review. The organization clarified in a statement that “the CMA does not consider there has been a change of control by Microsoft from material influence to de facto control over OpenAI.”

Microsoft played a key role in OpenAI’s early development by investing billions in the San Francisco-based firm. Over time, OpenAI has also garnered significant investments from other major entities, such as Japan’s Softbank and chip manufacturer Nvidia, spurred by the success of their ChatGPT technology.

The Competition and Markets Authority has intensified scrutiny over artificial intelligence deals due to a surge of investments from large technology companies into startups focused on generative artificial intelligence. Last year, it approved additional Microsoft engagements with Inflection AI, along with partnerships by Google and Amazon with chatbot maker Anthropic.