In a week of notable developments for Microsoft and the tech industry, the UK's competition watchdog has dropped its investigation into the partnership between Microsoft and OpenAI. Simultaneously, Microsoft has announced the discontinuation of Skype, its once-ubiquitous video telephony service. Separately, we look at an ETF that's positioned for long-term growth despite current market volatility.
UK Competition Watchdog Ends Microsoft-OpenAI Probe
The UK's decision to drop its antitrust probe into the Microsoft-OpenAI partnership has sparked controversy. Digital rights campaigners have criticized the move, arguing that it demonstrates the regulator's capitulation to Big Tech. The investigation was launched following scrutiny related to a boardroom battle within OpenAI last year.
Critics argue that this decision weakens the regulator's authority and raises concerns about the potential for anti-competitive practices. The partnership came under antitrust scrutiny last year, following the start-up's boardroom struggles. It remains to be seen what long-term impact this decision will have on the AI landscape.
Skype to Cease Operations in May
After 22 years of pioneering free video calls over the internet, Microsoft is pulling the plug on Skype. The service, founded in 2003, became synonymous with video telephony, even inspiring the verb "to skype."
“Simply calling with video: For a time, Skype was almost synonymous with this,” read the image caption from Microsoft's announcement. The discontinuation marks the end of an era for a service that revolutionized online communication. Users will need to find alternative video conferencing solutions as Skype sunsets in May.
Vanguard ETF: A Buy Despite Tech Sell-Off?
Despite the recent underperformance of technology stocks, the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) presents a compelling investment opportunity. While tech stocks like Nvidia, Apple, and Microsoft have driven the S&P 500 to new heights over the past decade, they have experienced a significant sell-off year-to-date. This sell-off impacts the broader market, given tech's substantial weight in the S&P 500.
The consumer discretionary sector, led by Amazon and Tesla, has also faced similar challenges. Alphabet, in the communications sector, has seen significant declines as well. For investors looking to capitalize on these dips, the Vanguard Mega Cap Growth ETF offers an attractive option due to its low expense ratio of just 0.07%.
While the ETF's concentration in large growth stocks makes it vulnerable to current market fluctuations, its proven track record of long-term wealth compounding makes it a worthwhile consideration for investors with a long-term outlook.
In conclusion, the UK's decision on the Microsoft-OpenAI probe, the end of Skype, and the potential upside of a Vanguard ETF highlight the ever-changing dynamics of the tech and investment landscapes.