Microsoft might not realize its iPhone moment with AI if regulators continue to reign down on its parade
Microsoft is under scrutiny again for its advances and partnerships in the AI landscape.
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What you need to know
Antitrust watchdogs seem to be onto Microsoft, and there’s no sign of letting up any time soon. It’s barely been a week since the tech gianteluded formal probe by the EUover itscomplicated relationship with OpenAI. The antitrust regulator establishedMicrosoft’s multi-billion dollar investmentin the hot startup wasn’t an acquisition and didn’t have control over its operations, ultimately clearing any looming merger concerns.
As it happens, Microsoft isn’t out of the woods yet. UK-based Competition and Markets Authority (CMA) haslaunched a preliminary investigation. It’ll focus on “Microsoft and Mistral AI, and Amazon and Anthropic, and Microsoft’s hiring of former employees and related arrangements with Inflection AI.”
Why is Microsoft under scrutiny again?
The regulator has requested comments from parties with insight into Microsoft’s and Amazon’s partnership with AI companies. As you may be aware, Microsoft recently got into a new multiyear deal with French startup Mistral AI to further affirm its position in the AI landscape.
At the time, OpenAI was under investigation by the Securities and Exchange Commission (SEC), following last year’s fiasco where the board of directors decided tofire and reinstate Sam Altman as CEOunder a week.
While the EU’s investigation on Microsoft didn’t warrant a formal probe, the CMA plans to look into the company’s “hiring of former employees and related arrangements with Inflection AI.” This can be centered on Microsoft’s recent reorg, which moved Bing, Edge, andCopilotunder itsnew AI division led by DeepMind and Inflection co-founderMustafa Suleyman.
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The UK-based antitrust watchdog will continue to receive comments on this specific issue till May 9, 2024. It’ll use these comments to establish whether Microsoft’s partnership falls within UK merger rules or promotes “anti-competitive” business practices in the region.
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If found culpable of this offense, the regulator will recommend actions to curate fair business practices for its rivals in the landscape. Unfortunately, this might deter the tech giant from realizing its full potential. Market analysts predictMicrosoft is on the brink of reaching its iPhone moment with AIwhich has already made it rank asthe world’s most valuable company with over $3 trillion in market capitalizationahead of Apple.
Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
