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Microsoft's multi-billion partnership with OpenAI has been under scrutiny by the European Commission, US FTC, and UK CMA. However, reports suggest that Microsoft will avoid a formal investigation by the EU regarding this partnership. The European Commission had initially raised concerns about the nature of the partnership, questioning if it should be treated as an acquisition requiring regulatory approval. Bloomberg and Reuters sources indicate that EU regulators have determined that Microsoft's investment in OpenAI did not result in a takeover of the company.
Despite the EU's decision, the US and UK probes into the Microsoft-OpenAI partnership are ongoing. Microsoft's non-voting position on OpenAI's board and exclusive licensing of GPT-4 and other models have been highlighted. To potentially mitigate further regulatory scrutiny, Microsoft has been forming partnerships with other generative AI startups like Mistral AI. The EU Commission's interest in the Mistral AI partnership suggests that Microsoft may need to diversify its AI collaborations to navigate regulatory challenges effectively.
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