CMA Concludes Microsoft-OpenAI Does Not Constitute a Merger

In a significant development, the UK's Competition and Markets Authority (CMA) has announced that the partnership between Microsoft and OpenAI does not qualify as a merger, thus falling outside its jurisdiction for review. This decision marks the culmination of an inquiry that began in December 2023, bringing clarity to the nature of the collaboration between the two tech giants.

Key Areas of Assessment

The CMA's investigation focused on three critical aspects of the partnership: Microsoft's investment and its role in OpenAI's governance, the provision of computing power by Microsoft, and the intellectual property and commercialization rights involved. The regulator's thorough examination concluded that Microsoft does not exert control over OpenAI's commercial policies.

Conclusion of the Inquiry

After a detailed review of the evidence, the CMA found no grounds to declare a "relevant merger situation." This decision not only clarifies the regulatory status of the Microsoft-OpenAI partnership but also sets a precedent for how similar collaborations might be viewed in the future.