A partnership between Microsoft and OpenAI is attracting the attention of the UK antitrust regulator

Britain’s antitrust watchdog said on Friday it would open an investigation into Microsoft’s multibillion-dollar partnership with ChatGBD developer OpenAI, the second time this year it has scrutinized the US software giant’s operations.

The Competition and Markets Authority (CMA) said on Friday that the analysis would consider whether the partnership had “acquired control”.

This is the second time this year that the regulator has examined competition issues related to the operations of North American software companies. The CMA said it would review whether the partnership with OpenAI created a merger situation before deciding on any official investigation.

“Recently, there have been several developments in the governance of OpenAI, some of which involve Microsoft,” the CMA said.

“In light of these developments, the CMA is now issuing an ITC (Invitation for Comment) to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a material link situation and, if so, has a potential impact on competition.”

The pace at which the use of artificial intelligence technology is growing is unparalleled in economic history, while advances in powerful foundational models such as ChatGPT mark a pivotal moment in the development of this transformative technology, CMA said.

The move follows an announcement in November that Microsoft, which has pledged to invest more than $10 billion in OpenAI, will take a non-voting position on the company’s board. It followed a tumultuous boardroom battle that saw the sudden departure and return of OpenAI CEO and founder Sam Altman.

Microsoft owns 49% of the company, according to sources familiar with the matter. OpenAI has a nonprofit parent that owns 2%, these sources said.

“The only thing that has changed is that Microsoft will now have a non-voting observer on the OpenAI board, which is very different from Google’s purchase of DeepMind in the UK,” Microsoft chairman Brad Smith said in a statement. Criticized his main rival.

He said the company would work closely with the CMA. OpenAI did not immediately respond to a request for comment.

Observer status means that a Microsoft representative can attend OpenAI board meetings and have access to confidential information, but does not have the right to vote on matters including elections or the selection of directors.