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Britain ends probe into Microsoft’s AI deal

Britain’s competition watchdog has closed its inquiry into Microsoft’s investment in OpenAI.

Early in 2023, OpenAI said that Microsoft had made a fresh “multi-year, multi-billion-dollar investment” in the firm, but added that it would continue to be governed by its non-profit parent company.

The Competition and Markets Authority (CMA) had opened the probe after the return of Sam Altman as chief executive of OpenAI just days after his sacking in November 2023.

The Competition and Markets Authority (CMA) said that it did not consider that there had been a change by Microsoft from material influence to de facto control over OpenAI.

CMA ‘defanged’ claim

“The relationship between Microsoft and OpenAI is complex and has continued to evolve during the course of the CMA’s investigation. This decision takes into account recent developments in that relationship,” the watchdog stated.

There has been criticism of the decision from digital-rights campaigners.

The BBC quoted campaigning group Foxglove as saying that the decision showed that the CMA had been "defanged", citing a British government call for regulators to help stimulate economic growth.

Last year, the European Commission decided that the partnership between Microsoft and OpenAI did not require a formal competition investigation.