Microsoft’s (NASDAQ:MSFT) partnership with ChatGPT maker OpenAI could be under the scanner. According to a Reuters report, the UK’s antitrust regulator, the Competition and Markets Authority (CMA), stated that it was weighing whether the tech giant’s collaboration with OpenAI has resulted in an “acquisition of control.”
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The regulator stated that it would consider if the partnership created a relevant merger situation and its potential impact on competition. CMA commented, “…the CMA is now issuing an ITC (Invitation to Comment) to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a relevant merger situation and, if so, the potential impact on competition.”
The CMA’s announcement comes after Microsoft took a non-voting position on the OpenAI board and committed to investing over $10 billion in OpenAI earlier this year. According to Reuters, Microsoft currently owns 49% of OpenAI while the company’s non-profit parent owns 2%.
What is a Good Price for MSFT?
Analysts remain bullish about MSFT with a Strong Buy consensus rating based on 35 Buys and one Hold. Year-to-date, MSFT stock has increased by 50%, and the average MSFT price target of $415.77 implies an upside potential of 12% at current levels.
