US antitrust authorities are preparing to crack down on tech giants’ efforts to dominate the rapidly evolving artificial intelligence sector. The Federal Trade Commission and the Department of Justice have agreed to investigate Microsoft, OpenAI, and Nvidia to ensure fair competition in the AI industry. The agreement ends a long debate over which agency should oversee AI companies, allowing for increased regulatory scrutiny on the companies’ behavior.
The Justice Department will investigate Nvidia for using its AI chip advantage to become a major player in the US market. The FTC will focus on Microsoft and OpenAI, specifically looking into Microsoft’s acquisition of Inflection AI. The FTC is examining whether Microsoft structured the deal to avoid antitrust reviews, as companies are required to report mergers over $119 million to federal agencies.
Microsoft defended its actions, stating that the acquisition of Inflection AI helped accelerate the development of Microsoft Copilot. Nvidia and OpenAI have not commented on the investigations. The agreement between the DOJ and FTC signals a shift towards increased oversight of tech giants in the AI sector, aiming to prevent companies from crushing competition and dominating the industry.
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https://www.washingtonpost.com/technology/2024/06/06/nvidia-microsoft-openai-antitrust-deal-ftc-doj/