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The U.K.\u2019s Competition and Markets Authority (CMA) is launching<\/a> preliminary enquiries into whether the close-knit tie-ups and hiring practices involving Microsoft, Amazon and a trio of AI startup falls within the scope of its merger rules \u2014 and whether the arrangements could impact competition in the U.K. market.<\/p>\n The announcement comes amid growing scrutiny of Big Tech\u2019s fresh approach to M&A in the world of artificial intelligence (AI), where the so-called \u201cquasi-merger<\/a>\u201d has emerged as flavor of the day as a means of \u2014 apparently \u2014 bypassing regulatory oversight.<\/p>\n Microsoft\u2019s investment in, and close partnership with<\/a>, ChatGPT-maker OpenAI attracted the CMA\u2019s scrutiny late last year<\/a>, with the regulator launching a formal \u201cinvitation to comment,\u201d aimed at relevant stakeholders in the AI and business spheres. Since then, Microsoft hired the core team behind Inflection AI<\/a>, a U.S.-based OpenAI rival it had previously invested in, and earlier this month Microsoft launched a new London AI hub<\/a> fronted by former Inflection and DeepMind scientist Jordan Hoffmann.<\/p>\n Elsewhere, Microsoft also recently invested in Mistral AI<\/a>, a French AI startup working on foundational models that could be construed as rivalling OpenAI.<\/p>\n