The European Union could start an investigation into Microsoft’s $13 billion investment into ChatGPT developer OpenAI, acccording to a report by Bloomberg. The EU is still reportedly looking into Microsoft-OpenAI deal to check whether any merger rules have been violated. If the EU competition watchdogs find any flouting of rules, it could mean a full-fledged investigation into the Microsoft-Open AI agreement.
The European Union is already scrutinizing the manufacturers of the generative AI models (OpenAI being of them) for the proposed AI Act. Microsoft’s $13 billion investment could expedite the union’s efforts to make sure that fair competition rules are upheld.
“Virtual worlds and generative AI are rapidly developing,” the Bloomberg report quotes Margrethe Vestager, EU’s executive vice president and antitrust commissioner. “It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers”, she added.
Vestager also reportedly said that the antitrust enforcers have invited businesses and experts for their feedback on the boom in generative AI leading to any competition issues. She said that the EU is “closely monitoring AI partnerships to ensure they do not unduly distort market dynamics.”
EU Is Concerned About Big Tech’s AI Investments
Three of the Big Tech firms–Microsoft, Amazon and Google– happen to have the biggest chunk as cloud services providers in the world. Sustaining AI tools like Open AI’s ChatGPT and Google’s Bard need massive computing power. It’s something Microsoft could provide to OpenAI tools.
As per the report, AI’s VC investment in European Union nations alone is estimated to be over €7.2 billion ($7.8 billion) in 2023. The virtual worlds market in Europe is reportedly €11 billion huge. The EU competition authority thinks that this exponential growth could have a major effect on how businesses compete.
With tech giants actively investing in AI startups, it seems like generative AI is here to stay. OpenAI, maker of the ChatGPT chatbot, has transformed into one of the major customers of Microsoft’s cloud computing business. Google is ramping up its own efforts with Bard, its AI chatbot.
Microsoft had earlier come under the EU antitrust radar for its acquisition of Activision-Blizzard. After having its own share of roadblocks, the deal was given a go both by UK’s CMA and EU after making some changes.
Microsoft-Open AI Relations
After Open AI CEO Sam Altman was ousted from the company, Microsoft’s shares tumbled. Microsoft CEO Satya Nadella then “personally helped negotiate and advocate for his return”. He even reportedly offered to hire Altman and other Open AI employees who wished to quit. But Altman soon got reinstated, and Open AI formed an interim board, with Microsoft added as an observer.
Going by the developments, it can clearly be seen that Microsoft is quite serious about OpenAI’s future. The Redmond-based tech giant is keen on using OpenAI technology in its software and tools. A few examples are Azure Cloud, Microsoft Bing, Microsoft 365 bundle and its marketing software.
EU Competition Chief Defends AI Act
Earlier, EU antitrust chief Margrethe Vestager defended the proposed Artificial Intelligence Act. In a statement given to The Financial Times, she said that the AI Act would “not harm innovation and research, but actually enhance it”.
Vestager added that the AI Act “creates predictability and legal certainty in the market when things are put to use.” Although the AI Act has found its supporters and got approval this month, some nations, like France, Germany, and Italy, are opposed to it.
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Winner of The 21st Century Emily Dickinson Award for his debut book ‘The Heart of Heartbeats’, Utkarsh found his calling to be a writer while studying engineering and has been writing professionally for over six years now. After completing… read more
