The EU is suddenly interested in the $13bn Microsoft invested in OpenAI over a year ago

Microsoft

The European Commission has initiated an investigation into the collaboration between Microsoft and OpenAI, under which the tech giant invested around $13bn in the startup.

Here's What We Know

The regulator intends to find out whether these infusions are subject to review under EU M&A rules. The European Commission has called on businesses and experts to report any concerns of competition infringement related to the deal.

"[We are] closely monitoring AI partnerships to ensure they do not unduly distort market dynamics" said Commissioner Margrethe Vestager.

Flashback

Microsoft is the largest minority investor in OpenAI Global LLC. It is a "fixed income" subsidiary controlled by the non-profit OpenAI Inc.

Microsoft's investment, provided in the form of cloud computing credits and cash, doesn't officially give it control over the company itself. In the long run, however, the corporation can return 100 times its invested capital.

OpenAI's unusual corporate structure came into the spotlight last November during the confusion surrounding the firing and subsequent return of its CEO Sam Altman. Microsoft had no legal influence over the outcome, but it intervened in the dispute by offering top executives jobs at its company.

Since then, there has been a reshuffle of personnel on the OpenAI board. Microsoft in turn got aseat on the startup's board, but without voting rights.

Earlier, the UK's CMA and the US FTC launched similar investigations.

Source: European Commission