OpenAI under Scrutiny

Microsoft investment in OpenAI under scrutiny from FTC and UK watchdog

The United States and United Kingdom's consumer watchdogs have both turned their gaze toward Microsoft's $10 billion investment in ChatGPT developer OpenAI over the possibility that it runs afoul of antitrust law.

The Federal Trade Commission and the U.K.-based Competitions and Markets Authority are both initiating investigations into Microsoft's investments in OpenAI, according to Bloomberg. The FTC's inquiry is preliminary, according to staffers involved. The CMA stated on Friday that it is gathering information from stakeholders to determine if the partnership will stifle competition.

Microsoft's investment in OpenAI has been notably successful, allowing it to add the innovative chatbot to several services, including Bing and the web browser Edge. However, the fact both agencies are pursuing this investigation concurrently reveals a strong interest in whether OpenAI's market prominence could be viewed as anti-competitive.

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