Microsoft has been active in the #AI sector lately. First, both Microsoft and Apple announced they were leaving OpenAI's board, citing improved governance at the startup. Shortly after, news emerged that the U.K. would investigate Microsoft's relationship with Inflection AI, despite Microsoft's claim that it was not an acquisition but merely hiring the startup's co-founders, most of its staff, and licensing its #tech.
This investigation will continue through the summer. Meanwhile, #Microsoft saw a win in June when the EU Commission dropped its probe into the company's relationship with #OpenAI. Despite these developments, Microsoft's AI activities, including a recent $40 million #investment in AI startup Armada through its venture arm #M12, continue to face scrutiny. The tech giant's deepening involvement in AI might lead to more legal challenges.
In June 2024, the Federal Trade Commission (FTC) and the U.S. Department of Justice agreed to investigate Microsoft's partnership with OpenAI and Microsoft's investments in the AI startup as part of a potential antitrust investigation. The FTC is looking into whether Microsoft and OpenAI have unfair advantages in the AI technology, particularly in large language models. The FTC has also sent subpoenas to the two companies to determine if their partnership avoided required government review.