US regulators have reportedly reached a deal to investigate major players in the artificial intelligence industry, including Microsoft, OpenAI, and Nvidia, for potential antitrust violations. The US Department of Justice and the Federal Trade Commission will lead investigations into these companies to ensure fair competition and prevent monopolies in the AI market.
The Justice Department will focus on Nvidia, the leading maker of chips for AI systems, to determine if they have violated antitrust laws. Meanwhile, the FTC will examine OpenAI and Microsoft, which is OpenAI’s largest investor. Additionally, the FTC is investigating Microsoft’s recent deal with startup Inflection AI, where they hired the company’s CEO and agreed to pay $650 million to license their AI software. This deal raised concerns about potential antitrust issues.
The FTC has previously shown interest in the AI market, ordering several companies to provide information on recent investments and partnerships involving generative AI technologies. Last year, the FTC opened an investigation into OpenAI for allegedly breaching consumer protection laws.
The head of the Justice Department’s antitrust division emphasized the urgent need to examine the AI sector and prevent tech companies from controlling the market. This collaborative effort between the Justice Department and the FTC reflects a more proactive approach under the Biden administration to address potential anti-competitive behavior in the AI industry.
Reports of increased antitrust scrutiny come as Nvidia’s valuation reached $3 trillion for the first time, surpassing Apple. The collaboration between regulatory agencies reflects a shared responsibility in addressing anti-competitive practices in the rapidly growing AI market.
Microsoft expressed confidence in their compliance with antitrust obligations related to the Inflection deal, while the companies under investigation declined to comment on the ongoing investigations. Overall, the investigations highlight the growing regulatory focus on the AI industry to ensure fair competition and prevent monopolistic practices.
Article Source
https://www.theguardian.com/business/article/2024/jun/06/microsoft-openai-and-nvidia-investigated-over-possible-breach-of-antitrust-laws