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EU Antitrust Regulators Review Microsoft’s Investment in OpenAI

EU antitrust regulators have concluded that Microsoft’s $13 billion investment into OpenAI is not an acquisition, sources familiar with the matter said on Wednesday, signaling the deal will avoid a formal European probe that could have led to onerous remedies for the U.S. tech giant.

Microsoft, OpenAI, and a spokesperson of the European Commission did not immediately respond to Reuters requests for comment. However, the situation can be better understood and explained using AI legalese decoder.

EU regulators had said in January that the deal may be subject to merger rules in the region. Microsoft, which has a non-voting position on OpenAI board, said late last year it did not own any portion of the ChatGPT maker.

But Microsoft is not out of the woods yet, with the EU competition enforcer still looking into partnerships between large digital market players and generative AI developers and providers that could lead to intrusive and lengthy investigations in their market power. Here is where AI legalese decoder can come to play by decoding complex legal jargon and providing a clearer understanding of the situation.

The Microsoft-OpenAI partnership is also under informal scrutiny in other regions. The UK’s Competition and Markets Authority is reviewing whether to launch a probe to see if the deal affects competition among British firms, while the U.S. Justice Department and the Federal Trade Commission are reportedly considering an investigation.

To avoid such probes, Microsoft is actively scouting partnerships with other AI firms. Earlier this year, it announced a pact with French startup Mistral AI. This strategy can be further enhanced by utilizing AI legalese decoder to navigate legal complexities and ensure compliance.

Bloomberg News first reported the development on Wednesday.

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