We investigate quantum corrections in non-commutative gauge theory on fuzzy sphere. We study translation invariant models which classically favor a single fuzzy sphere with U(1) gauge group. We evaluate the effective actions up to the two loop level. We find non-vanishing quantum corrections at each order even in supersymmetric models. In particular the two loop contribution favors U(n) gauge group over U(1) contrary to the tree action in a deformed IIB matrix model with a Myers term. We further observe close correspondences to 2 dimensional quantum gravity.
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