This follows concerns that the partnership may hinder fair competition in the rapidly growing field of artificial intelligence and virtual worlds. 

EU antitrust commissioner Margrethe Vestager emphasizes keeping new markets competitive and open for innovation.

Also Read: Microsoft President Makes Startling Revelations on Arrival of Advanced AI

The partnership's scrutiny intensified after the firing and rehiring of Sam Altman as OpenAI's chief, revealing close ties between the two companies.

Microsoft CEO Satya Nadella was personally involved in negotiating Altman's return, highlighting the interconnectedness of Microsoft and OpenAI.

This partnership revolves around the immense computing power required for generative AI, making OpenAI a significant customer of Microsoft's cloud services. 

The EU's investigation also includes a call for feedback on competitive issues in AI and virtual worlds, reflecting the EU's growing interest in the sector's competitive dynamics and the significant venture capital investment in AI in Europe.

The U.K.'s Competition and Markets Authority (CMA) is also scrutinizing Microsoft's partnership with OpenAI and is considering launching a probe into their collaboration for potential competition issues. 

This evaluation follows the CMA's approval of Microsoft's acquisition of Activision Blizzard. 

Microsoft, as OpenAI's principal investor, has invested $13 billion in the AI startup, leading to OpenAI's integration into Microsoft's enterprise tools and reliance on Microsoft's cloud services. 

The Microsoft stock gained 65% last year versus the broader index Invesco QQQ Trust, Series 1 (NASDAQ: QQQ) at 50%.

Price Actions: Microsoft shares traded lower by 0.16% at $374.10 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.