Tech giant Microsoft’s (NASDAQ:MSFT) $10 billion investment into AI platform OpenAI could be subject to EU merger review under the EU Merger Regulation, the European Commission’s antitrust regulator stated on Tuesday. Microsoft has a non-voting position on OpenAI’s board and has previously said it does not own any portion of OpenAI.
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The EU is investigating agreements between major digital market players and generative AI developers for potential impact on market dynamics. However, it did not name any companies in its press release. The EU Commission has invited feedback on competition in virtual worlds and AI from interested parties until March 11. It has also issued information requests to large digital companies about these topics.
Is Microsoft a Buy, Sell, or Hold?
Analysts remain bullish on MSFT stock with a Strong Buy consensus rating based on 36 Buys and one Hold. In the past year, MSFT stock has surged by more than 60%, and the average MSFT price target of $426.12 implies an upside potential of 13.7% at current levels.
