UK regulators are investigating Microsoft’s hiring of a startup’s AI team, including a co-founder who now leads Microsoft’s new AI division. This move has sparked concerns it might stifle competition in the AI market.
Microsoft argues it’s simply acquiring talent, but the regulator is also probing a licensing deal between the two companies. A decision on a deeper investigation will be made by September 11th.
Generative AI, where computers create text and images based on vast data, is a hot topic. Big tech companies are jumping in, with Microsoft’s investment in OpenAI (known for the ChatGPT chatbot) being a prime example. Google, Meta, and others are also integrating generative AI tools into their services to capitalize on the trend. This reliance on powerful hardware for these energy-hungry tasks is boosting companies like Nvidia1.
Meanwhile, regulators are concerned about big tech’s dominance in AI. The UK’s Competition and Markets Authority highlighted the risk of large firms controlling access to hardware and AI products. They worry that without fair competition, smaller players and innovation could be stifled.
