Microsoft's OpenAI Ties Face Potential E.U. Merger Probe

Microsoft Corp.'s 13 billion investment into OpenAI Inc. risks a full-blown investigation by European Union deals watchdogs, after a mutiny at the ChatGPT creator laid bare deep ties between the two companies. The European Commission said on Tuesday that it's examining whether Microsoft's involvement should be vetted under the bloc's merger rules -- paving the way for a formal probe and even a potential unwinding if it's found to hamper fair competition. The EU move, part of a broader look at artificial intelligence, follows a similar step by the UK's Competition and Markets Authority. "Virtual worlds and generative AI are rapidly developing," said Margrethe Vestager, the EU's antitrust commissioner. "It is fundamental that these new markets stay competitive, and that nothing stands in the way of businesses growing and providing the best and most innovative products to consumers."