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Microsoft (NASDAQ:MSFT) just scored a big win in the U.K., with regulators deciding not to open a formal investigation into its partnership with OpenAI. After months of scrutiny, the Competition and Markets Authority ruled that Microsoft's multibillion-dollar investment doesn't give it de facto control over the AI startup. That's a major relief for the tech giant, which has poured over $13 billion into OpenAI since 2019. The ruling also comes at a crucial moment as OpenAI shifts toward a for-profit model, allowing Microsoft to keep its strategic edge without regulators breathing down its neck.
But the AI race is far from over. While Microsoft dodged a bullet in the U.K., global regulators are still watching closely. The European Union recently examined the partnership but stopped short of a formal challenge. Meanwhile, the U.S. Federal Trade Commission is digging into the AI funding spree, with Microsoft, Alphabet, Amazon, and Anthropic all under the microscope. Microsoft has already taken steps to avoid further scrutiny, including giving up its observer seat on OpenAI's board. At the same time, new heavyweight investors like SoftBank and Nvidia are jumping in, adding more competition to the AI arms race.
For investors, this decision removes a key overhang and keeps Microsoft in the driver's seat of the AI boom. The green light from U.K. regulators means the company can keep scaling its AI ambitions without immediate legal roadblocks. But with Big Tech doubling down on AI investments and regulatory oversight evolving, the battle for dominance is only getting started
This article first appeared on GuruFocus.