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Microsoft (NASDAQ:MSFT) just got some good news from UK regulators. The country's Competition and Markets Authority (CMA) has decided not to investigate its partnership with OpenAI, ruling that Microsoft doesn't actually control the ChatGPT maker. That's a win for Microsoft, which has been trying to expand its AI influence while avoiding regulatory roadblocks.
The CMA launched its probe in 2023 after OpenAI's leadership chaos, when CEO Sam Altman was fired and then rehired. Regulators wanted to know if Microsoft's close ties meant it was effectively running OpenAI, but after months of review, they said OpenAI has become less dependent on Microsoft for computing power, so there's no merger to investigate.
But before Microsoft celebrates, the U.S. is still watching. In January, the Federal Trade Commission (FTC) flagged Microsoft's $13.75 billion investment in OpenAI, raising concerns that it might extend Microsoft's dominance in cloud computing into the AI space.
The FTC is also reviewing Amazon's (NASDAQ:AMZN) $8 billion investment in Anthropic and Alphabet's (NASDAQ:GOOG) $2.55 billion stake in the same company. So while Microsoft avoids UK trouble, its AI ambitions are still facing big questions in the U.S.
This article first appeared on GuruFocus.