Is Microsofts AI Ambitions at Risk of Regulatory Fire

Microsoft faces ongoing regulatory scrutiny over its AI activities, with investigations in the U.K. and the EU. The company exited its board position at OpenAI, citing improved governance, and shortly after faced a U.K. merger investigation regarding its relationship with generative AI startup Inflection AI. Most of Inflection's co-founders, staff, and technology were acquired by Microsoft, although not formally presented as an acquisition. While the EU Commission dropped its probe into Microsoft's relationship with OpenAI, regulatory interest persists. Additionally, Microsoft’s venture arm, M12, led a $40 million investment in edge computing AI startup Armada, highlighting the company's strong interest in the AI sector.

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