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Microsoft’s (NASDAQ:MSFT) multi-billion dollar investment into generative artificial intelligence company OpenAI may face additional scrutiny from the European Union’s antitrust chief over its use of Microsoft’s cloud technology, Bloomberg reported.
Microsoft shares were fractionally higher in on Friday.
Margrethe Vestager, the Executive Vice President of the European Commission, is likely to unveil an initiative where the agency will ask Microsoft customers and rivals about its deal with OpenAI to use Microsoft Azure and whether it hampers competition, the news outlet added, citing people familiar with the matter.
OpenAI did not respond to a request for comment from Seeking Alpha, while a Microsoft spokesperson told Seeking Alpha that it is ready to address any issues the EC may have.
“We appreciate the European Commission’s thorough review and its conclusion that Microsoft’s investment and partnership with OpenAI does not give Microsoft control over the company. We stand ready to respond to any additional questions the European Commission may have.”
It was reported earlier this year that the deal between the two companies, in which Microsoft invested billions of dollars for access to OpenAI’s technology, would avoid a formal investigation by the EU.
OpenAI signed a deal with Oracle (ORCL) earlier this month to use its cloud infrastructure and extend Microsoft Azure (MSFT) AI Platform.
The pact between OpenAI, creator of the popular ChatGPT, and Microsoft, has come under scrutiny from regulators around the world, including in the U.S., with the Federal Trade Commission inquiring into the deal. The U.K.’s Competition and Markets Authority has also looked into the deal.
Microsoft is under scrutiny in Europe for reasons beyond its OpenAI deal. Earlier this week, the EC alleged that the Satya Nadella-led firm breached EU antitrust rules by tying its Teams communication app to its productivity applications included in its suites for businesses Office 365 and Microsoft 365.
(This story has been updated to include a response from Microsoft.)