Microsoft's Open AI deal is coming under regulatory scrutiny.

Why an innovative partnership may now get a second look.

Happy Friday, December 8th.

Welcome to the Tech Check Podcast.

I'm Deerejubosa.

And I'm Markerejir Bosa.

And I'm Mark Gilbert. News today, regulators in the US and the UK, now reportedly taking a closer

look at Microsoft's partnership with Open AID. This has become a theme, right, that we've talked about.

Mega Cap companies making giant investments into capital intensive AI companies.

Yeah, it's a conversation that's being had a lot here too among tech startups and I would

say it's not a straightforward.

Some startups sort of love these deals because it creates these large language models that they can build on top of.

Some of them don't like it because they feel like mergers or giving a leg up to certain generative

AI companies.

So we've been talking about it here and also just the way that this deal got done right so much of what we report on is regulatory

that deal,

that deal, Microsoft's earlier this year with open AI

it seemed like perfectly manufactured for this era, right?

Microsoft, it got a stake in the generative AI darling. for this

area, Microsoft, it got a stake in the generative AI darling, the creator of ChatGBT, and in exchange

it got this exclusive cloud partnership.

Open AI got the compute power that it needed,

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