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EC drops investigation into Microsoft and OpenAI


EC drops investigation Microsoft OpenAI

The news that the European Commission (EC) would not pursue a formal investigation into Microsoft's $13 billion investment in OpenAI helped to allay fears that the partnership would be terminated in accordance with merger regulations.

Dissociating itself from Microsoft's direct governance, OpenAI's collaboration wasn't considered warranting a formal investigation by the European Commission, as reported by Bloomberg. The news agency highlighted that Microsoft's investment didn't signify a deliberate attempt to acquire the company.

Bloomberg was informed by an EC representative that there needs to be evidence of a sustained "change of control" between the two companies.

Mobile World Live did not receive a response from Microsoft. After the UK and, seemingly, the US took certain actions, the EC stated that it would launch an investigation to determine if Microsoft's OpenAI investment could potentially fall under its merger regulation.

This week, Microsoft has made a groundbreaking investment of $1.55 billion to secure a minority stake in G42, a cutting-edge AI startup based in the United Arab Emirates. This comes as the latest addition to Microsoft's remarkable series of multibillion-dollar investments in the flourishing AI industry across various nations.

The AI start-up Anthropic has secured investments of $4 billion from Amazon and $2 billion from Google, its main rivals in the tech industry.

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