Latest news with #DougGurr
Yahoo
07-03-2025
- Business
- Yahoo
Microsoft's $13 Billion OpenAI Tie-Up Cleared by UK Watchdog
(Bloomberg) -- Microsoft Corp.'s $13 billion investment into OpenAI Inc. was cleared by the UK's antitrust watchdog, ending months of uncertainty over the tie-up. Trump Administration Plans to Eliminate Dozens of Housing Offices Republican Mayor Braces for Tariffs: 'We Didn't Budget for This' NJ College to Merge With State School After Financial Stress How Upzoning in Cambridge Broke the YIMBY Mold NYC's Finances Are Sinking With Gauge Falling to 11-Year Low The Competition and Markets Authority said that the 2023 deal doesn't qualify for a full investigation under merger rules. The CMA said in 2023 it intended to look at whether the partnership gave either of the two firms more control and influence over another. The decision, after around 14 months of scrutiny, removes one UK regulatory uncertainty for Microsoft, which faces a continued investigation into its cloud service offerings. It also comes weeks after the US Federal Trade Commission raised concerns that the deal could extend Microsoft's dominance in cloud computing into the nascent artificial intelligence market. 'The CMA found that while Microsoft did acquire material influence over OpenAI in 2019, there has not been a change of control by Microsoft,' the CMA said in a statement. Microsoft's bet on OpenAI gave the software maker an early lead over its Big Tech rivals by integrating its products into virtually every corner of its core businesses. Microsoft and Apple Inc. last year dropped plans to take board roles at OpenAI in a decision that underscored the growing regulatory scrutiny. There has been mounting government pressure for regulators to speed up decision making, cut red tape and allow more risk to spur the economy. That led to the ouster of its chairman in favor of ex-Amazon Inc. executive Doug Gurr, and a strategic steer too focus on speeding up the decision-making process on interventions, giving more certainty for investors. 'We are not blind to the length of time that this investigation has taken,' Joel Bamford, the CMA's executive director of mergers, said in a LinkedIn post. The degree of complexity, the changing nature of the partnership and continued dialogue with the companies led to 'an exceptionally extended period of review,' Bamford said on Wednesday. The CMA's review was part of attempts by global regulators to ensure Big Tech's investments into the AI industry don't distort the market or lead to a handful of all-powerful firms. The agency voiced its concerns about what it called an 'interconnected web' of partnerships and investments in the AI ecosystem. It previously cleared Google's partnership with AI firm Anthropic. 'We are focused on developing AI that is safe and beneficial for everyone,' OpenAI said in a statement. Microsoft's partnership with OpenAI and its continued evolution promote competition, a Microsoft spokesperson said after the decision. (Updates comments from Microsoft, OpenAI and CMA) Snack Makers Are Removing Fake Colors From Processed Foods An All-American Finance Empire Drew Billions—and a Regulator's Attention The Mysterious Billionaire Behind the World's Most Popular Vapes Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Greenland Voters Weigh Their Election's Most Important Issue: Trump ©2025 Bloomberg L.P.
The Guardian
05-03-2025
- Business
- The Guardian
UK watchdog drops competition review of Microsoft's OpenAI partnership
The UK's competition watchdog will not hold a formal investigation into Microsoft's partnership with the startup behind the artificial intelligence chatbot ChatGPT, stating that while the $2.9tn (£2.3tn) tech company has 'material influence' over OpenAI it does not control it. The Competition and Markets Authority said Microsoft, OpenAI's biggest financial backer with a $13bn investment, acquired material influence over the San Francisco-based business in 2019 but did not exercise de facto control over it – and therefore did not meet the threshold for an official inquiry. The decision follows expressions of disquiet over the appointment of the former boss of Amazon UK, Doug Gurr, as the CMA's interim chair. The organisation's chief executive, Sarah Cardell, has also said the CMA does not want to create a 'chilling effect' on business confidence, amid pressure from the UK government on regulators to produce pro-growth proposals. The CMA's executive director for mergers, Joel Bamford, said: 'We have found that there has not been a change of control by Microsoft from material influence to de facto control over OpenAI. Because this change of control has not happened, the partnership in its current form does not qualify for review under the UK's merger control regime.' However, Bamford added that the decision should 'not be read as the partnership being given a clean bill of health on competition concerns'. The CMA started investigating the OpenAI relationship after the dramatic sacking and reinstatement of Sam Altman as OpenAI's chief executive – over a hectic few days in November 2023, Microsoft announced it had hired Altman, only for him to rejoin the startup. The CMA highlighted a recent reduction in OpenAI's reliance on Microsoft for computer power – a key factor in operating an AI business – as an influence over its decision. A Microsoft spokesperson said the partnership with OpenAI and its continued evolution 'promote competition, innovation, and responsible AI development … We welcome the CMA's conclusion, after careful and prudent consideration of the commercial realities, to close its investigation.' Last year, the CMA decided not to investigate Amazon's investment in the AI firm Anthropic and further Microsoft partnerships with the AI firms Mistral and Inflection. Microsoft recently contributed to a funding round that raised $6.6bn for OpenAI and valued the business at $157bn. OpenAI is run by a non-profit board but has a for-profit subsidiary, in which Microsoft is the biggest backer, with returns to investors and employees capped. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion Despite concerns over Gurr's appointment and the CMA's efforts to avoid a 'chilling effect' on the economy, the CMA did target big tech with investigations in January, the month that Gurr was appointed. Google is being investigated over its dominance in internet search and search advertising, while it is also conducting a separate inquiry on the impact of Apple and Google's mobile platforms on consumers and businesses. In January, Microsoft said the CMA was making a 'fundamental mistake' in its investigation into the cloud market, after the watchdog said the tech firm was making it harder for Google and Amazon to compete effectively for customers in cloud computing, the term for providing IT services such as data storage and computing power over the internet with a pay-as-you-go pricing structure.
Sky News
11-02-2025
- Science
- Sky News
Whale earwax and parasitic worms go on display at Natural History Museum as part of 'broken planet' exhibition
Whale earwax and parasitic worms are going on display at the Natural History Museum in a new exhibition about the "broken planet". The free new gallery is designed to "explore the biggest challenges facing our planet" and provide visitors with solutions and positive actions they can take. It is the first new, permanent gallery to open at the famous London museum since 2016. 'Fixing our Broken Planet' will feature bacteria that can be used to extract valuable copper from mine waste, show how bison are redesigning British forests for the better and explain how DNA analysis is fighting mosquito-borne diseases like malaria. Specimens like a Sumatran rhinoceros, parasitic worms and whale's earwax will be on show, curated to tell the story of the relationship between people and the planet. It comes amid mounting warnings about humans' impact on the natural world, including via "dangerous climate breakdown". Visitors will be given "practical, evidence-based choices they can take to combat the planetary emergency" as demand for food, materials and energy soars. Museum director Dr Doug Gurr said: "Our scientists have been working to find solutions for and from nature. Fixing Our Broken Planet places this research at the heart of the Museum... showing that we all have the power to make change." Opening in April, it is part-funded by the government's Department for Culture, Media and Sport. The gallery will "[demonstrate] how we can all make a difference", he added. Last week, the museum crowned a photo of a badger looking at graffiti as the winner of the wildlife photographer people's choice award.
The Independent
28-01-2025
- Business
- The Independent
Amazon and Microsoft ‘should face probe over cloud service competition concerns'
The UK's competition regulator should consider investigating Amazon and Microsoft's cloud services under new digital markets rules, an independent inquiry group has said. Publishing its provisional findings on an investigation into the cloud services market in the UK, the group said competition in the £9 billion sector was not working as well as it could be. This could be leading to higher costs, less choice and innovation and a lower quality of services for businesses across the UK – in a sector dominated by Amazon's AWS and Microsoft, who each have around a 40% share of consumer spend in the market. In its report, the inquiry group said Microsoft in particular was using its strong position in software to make it harder for AWS and Google – the third largest player in the market – to compete effectively for cloud customers that wish to use Microsoft software on the cloud. This is reducing the competitive challenge that AWS and Google can provide to Microsoft's position in the cloud market, the report said. It also said there were technical and commercial barriers that made it difficult for users to switch between different cloud providers, which was locking them into initial choices. As a result of these concerns, the inquiry group said it was recommending the Competition and Markets Authority (CMA) use its powers under the Digital Markets, Competition and Consumers Act (DMCCA) to investigate, and consider whether AWS and Microsoft should be designated with strategic market status. Former Amazon UK boss Doug Gurr was announced as the new chair of the CMA last week. Under the new rules, firms which are designated are required to follow special measures or interventions which are designed to boost competition. Kip Meek, chair of the CMA's independent inquiry group, said: 'Cloud services underpin most business operations, providing vital infrastructure to businesses and organisations across the UK economy. 'Our provisional view is that competition in this market is not working as well as it could be. So, we propose that the CMA considers investigating the largest cloud service providers using its new digital markets powers. 'Effective competition in the delivery of these vital services could drive choice, quality and competitive prices – not only helping UK businesses but boosting innovation, productivity, growth and investment across the UK economy.' We urge the CMA to carefully consider how regulatory intervention in other areas will stifle innovation and ultimately harm customers in the UK AWS In a statement, an AWS spokesperson said: 'The proposed intervention under the Digital Markets, Competition and Consumers Act is not warranted. 'The evidence demonstrates the IT services industry is highly competitive. ' Cloud computing has lowered costs for UK businesses with on-demand services and pay-as-you-go pricing, expanded product choice, and increased competition and innovation. 'We welcome the CMA's updated finding that customer discounts do not harm competition. But we urge the CMA to carefully consider how regulatory intervention in other areas will stifle innovation and ultimately harm customers in the UK. We will continue to work constructively with the CMA as they work on their final report.' Rima Alaily, corporate vice president and deputy general counsel competition law group at Microsoft, said: 'The draft report should be focused on paving the way for the UK's AI-powered future, not fixating on legacy products launched in the last century. 'The cloud computing market has never been so dynamic and competitive, attracting billions in investments, new entrants, and rapid innovation. What could be better for UK businesses and government?'
The Independent
28-01-2025
- Business
- The Independent
Amazon and Google ‘should face probe over cloud service competition concerns'
The UK's competition regulator should consider investigating Amazon and Microsoft's cloud services under new digital markets rules, an independent inquiry group has said. Publishing its provisional findings on an investigation into the cloud services market in the UK, the group said competition in the £9 billion sector was not working as well as it could be. This could be leading to higher costs, less choice and innovation and a lower quality of services for businesses across the UK – in a sector dominated by Amazon's AWS and Microsoft, who each have around a 40% share of consumer spend in the market. In its report, the inquiry group said Microsoft in particular was using its strong position in software to make it harder for AWS and Google – the third largest player in the market – to compete effectively for cloud customers that wish to use Microsoft software on the cloud. This is reducing the competitive challenge that AWS and Google can provide to Microsoft's position in the cloud market, the report said. It also said there were technical and commercial barriers that made it difficult for users to switch between different cloud providers, which was locking them into initial choices. As a result of these concerns, the inquiry group said it was recommending the Competition and Markets Authority (CMA) use its powers under the Digital Markets, Competition and Consumers Act (DMCCA) to investigate, and consider whether AWS and Microsoft should be designated with strategic market status. Former Amazon UK boss Doug Gurr was announced as the new chair of the CMA last week. Under the new rules, firms which are designated are required to follow special measures or interventions which are designed to boost competition. Kip Meek, chair of the CMA's independent inquiry group, said: 'Cloud services underpin most business operations, providing vital infrastructure to businesses and organisations across the UK economy. 'Our provisional view is that competition in this market is not working as well as it could be. So, we propose that the CMA considers investigating the largest cloud service providers using its new digital markets powers. 'Effective competition in the delivery of these vital services could drive choice, quality and competitive prices – not only helping UK businesses but boosting innovation, productivity, growth and investment across the UK economy.' We urge the CMA to carefully consider how regulatory intervention in other areas will stifle innovation and ultimately harm customers in the UK AWS In a statement, an AWS spokesperson said: 'The proposed intervention under the Digital Markets, Competition and Consumers Act is not warranted. 'The evidence demonstrates the IT services industry is highly competitive. ' Cloud computing has lowered costs for UK businesses with on-demand services and pay-as-you-go pricing, expanded product choice, and increased competition and innovation. 'We welcome the CMA's updated finding that customer discounts do not harm competition. But we urge the CMA to carefully consider how regulatory intervention in other areas will stifle innovation and ultimately harm customers in the UK. We will continue to work constructively with the CMA as they work on their final report.' Rima Alaily, corporate vice president and deputy general counsel competition law group at Microsoft, said: 'The draft report should be focused on paving the way for the UK's AI-powered future, not fixating on legacy products launched in the last century. 'The cloud computing market has never been so dynamic and competitive, attracting billions in investments, new entrants, and rapid innovation. What could be better for UK businesses and government?'
