UK watchdog drops competition review of Microsoft's OpenAI deal

Core Viewpoint - The UK's Competition and Markets Authority (CMA) has concluded its review of Microsoft's partnership with OpenAI, determining that the deal does not require further investigation under merger regulations [2]. Group 1: Regulatory Findings - The CMA stated that there is no evidence to suggest that Microsoft's influence over OpenAI has shifted from material influence to de facto control, thus not qualifying for a merger investigation [2]. - The CMA has increased scrutiny of AI-related deals due to significant investments from major tech companies in generative AI startups [4]. Group 2: Investment Background - Microsoft was an early investor in OpenAI, contributing billions of dollars during its initial funding stages [3]. - OpenAI has since attracted additional investments from notable firms such as Japan's Softbank and chipmaker Nvidia, particularly following the success of ChatGPT [3].