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Joaquim Cardoso MSc.
Servant Leader, Chief Research & Strategy Officer (CRSO),
Editor in Chief and Senior Advisor
January 17, 2024
This is an Executive Summary, of the publication by Euractiv, under the title above,
What is the message?
Microsoft CEO Satya Nadella’s playes defense of the partnership between Microsoft and OpenAI, especially in the face of scrutiny from EU and UK regulators.
Executive Summary
Microsoft CEO Satya Nadella defends the partnership with OpenAI amidst regulatory scrutiny from EU and UK authorities. The European Commission is investigating the nature of the collaboration, with Microsoft having invested nearly €12 billion.
Nadella emphasizes the partnership’s role in fostering competition in the AI industry, dismissing concerns of it being akin to an acquisition.
Regulators, including the European Commission, are examining the arrangement under the Merger Regulation, with a focus on ensuring fair competition.
Additionally, Nadella addresses OpenAI’s governance issues and expresses confidence in mitigating AI-powered disinformation risks during global elections.
Key Points and Arguments:
Nature of Partnership:
Nadella defends the Microsoft-OpenAI partnership as a “pro-competition” alliance, stating that partnerships are essential for competition in the AI industry.
Regulatory Scrutiny:
The European Commission is investigating the partnership, considering the substantial investment by Microsoft. Regulators are assessing whether the collaboration resembles an acquisition and could hinder fair competition.
Venture Capital Funding:
Nadella suggests that examining venture capital funding can provide evidence of a competitive market, advising antitrust regulators to consider where funding is directed.
OpenAI’s Governance:
The scrutiny stems from the temporary ousting of OpenAI’s CEO, Sam Altman, and subsequent reinstatement after employee and investor opposition. Nadella emphasizes the need for good governance and stability.
AI-Powered Disinformation:
Nadella expresses confidence in mitigating AI-powered disinformation risks during upcoming global elections, highlighting the company’s commitment to addressing challenges in election interference.
Compliance with Regulations:
Microsoft’s services, including LinkedIn and Bing, must adhere to the Digital Services Act (DSA) for content moderation and disinformation risk assessments during the EU’s June elections.
EU Merger Regulation:
The EU executive is considering an official investigation under the Merger Regulation, granting the authority to assess mergers and acquisitions that may impede fair competition in the European Economic Area.
