Irish Council Calls for EU Probe into Microsoft-OpenAI Deal, Alleges Monopolistic Control
Summary:
The Irish Council for Civil Liberties has submitted a letter to the European Union, urging for an investigation into Microsoft's relationship with OpenAI. The council believes that Microsoft-OpenAI's partnership is more like a merger, based on Microsoft's $13 billion investment and other signs of decisive control over OpenAI. The submission warns about potential monopolistic impacts on the AI industry, which may harm market competition and consumer interest. Similar investigations are ongoing in the UK as well.
The European Union is being called upon by the Irish Council for Civil Liberties to probe into Microsoft's alliance with OpenAI. The demand was put forward in a letter on February 2, as part of a response to the European Commission's request for feedback. The letter initiates by appreciating the investigation and subsequently elaborates on reasons why the Microsoft-OpenAI collaboration should be regarded as a consolidation, not a mere partnership. The council, along with various associations, had shared their insights on the presumptive merger between the two firms earlier this week to the European Commission, building upon their previous response to the UK competition authority.
Endorsed by several affiliated groups such as Foxglove, Mozilla, and the European Digital SME Alliance, the council's letter suggests that Microsoft's relationship with OpenAI exceeds conventional partnership expectations. It makes a case by referring to the software giant's $13 billion investment in OpenAI and the controversial dismissal followed by reinstatement of Sam Altman, OpenAI's cofounder and CEO. The document further exemplifies that Microsoft stepped in to rescind Altman's termination and ended up providing job opportunities for Altman and any willing OpenAI employees who wished to follow him.
The council's argument implies that Microsoft's involvement with OpenAI's leadership predicament in November 2023 and related incidents strongly denote a 'decisive influence' over OpenAI. The submission goes beyond indicating corporate influence and suggests that Microsoft is exercising monopoly over the AI industry. It argues that Microsoft, with its Azure cloud services serving as a base for some OpenAI services, might have a significant technological control over services like ChatGPT. If proven, this control could negatively impact both competition and customer experience.
The council expresses its concern that Microsoft, as an incumbent, dictating the evolution of AI, would benefit their finances but violate public interest. The consolidation of Microsoft and OpenAI is also under scrutiny in the United Kingdom, where it is being evaluated if the partnership should technically be labeled as a merger in compliance with the law.
Published At
2/2/2024 7:45:00 PM
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