US watchdogs are gearing up for an antitrust investigation into the dominance of big tech companies in the AI industry. Companies under scrutiny include Microsoft, Nvidia, and OpenAI. The investigations will be divided between the US Justice Department and the Federal Trade Commission.
The Justice Department will lead the investigation into Nvidia, which currently controls about 80% of the AI semiconductor market. The chipmaker’s market dominance has led to profit margins of up to 80%. Analysts believe that Nvidia could potentially become the most valuable company in the world in the coming years due to its leading position in the AI industry.
On the other hand, the FTC will investigate OpenAI and Microsoft. OpenAI, despite being officially a nonprofit organization, has a for-profit subsidiary that receives strong backing from Microsoft. Regulators are concerned about the advantage big tech companies have in access to the data used to train AI models and the potential impact on the creative work market.
The FTC has already been looking into allegations that OpenAI violated consumer protection laws and has requested details about partnerships from several major tech companies. Both the Justice Department and the FTC aim to avoid duplicating investigative efforts and share the responsibility for enforcing competition laws.
Overall, the investigations aim to address concerns about the dominance of big tech companies in the AI industry and the potential antitrust issues that may arise from their control over key technologies and access to data. Watchdogs are paying close attention to the market dynamics and the impact of these companies on innovation and competition in the rapidly growing AI sector.
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https://finance.yahoo.com/video/nvidia-microsoft-openai-may-face-045236244.html