Microsoft’s $13B Investment in OpenAI Could Face European Roadblock

One of the most important corporate alliances of the past decade could face new regulatory scrutiny as European Union officials weigh whether to probe the $13 billion investment Microsoft has made in OpenAI, the startup behind artificial intelligence products like ChatGPT and DALL-E.

The European Commission on Tuesday said it would consider whether the ties between the two companies fall under European merger rules, Bloomberg reports. It's unclear if the EU will pursue such a probe and equally unclear what the consequences could be, but Microsoft's connection to OpenAI has allowed it to gain a considerable advantage in the race to develop AI, and the Redmond, Wash.-based firm will surely fight hard against any regulatory action that could unwind its lucrative partnership with OpenAI.

Microsoft faces the possibility of a similar investigation by U.K. authorities. Microsoft last month dismissed the concerns of British regulators, saying it had "forged a partnership with OpenAI that has fostered more AI innovation and competition, while preserving independence for both companies."

The deep ties between Microsoft and OpenAI were spotlighted during the corporate drama that engulfed OpenAI in November—when the startup's board fired CEO Sam Altman and then rehired him days later after Microsoft urged the board to reinstate him.