The Department of Justice and federal regulators are launching an antitrust investigation into Microsoft, Nvidia, and OpenAI due to their involvement in the AI industry, as reported by multiple media outlets. This investigation follows subpoenas sent to the companies by the DOJ and FTC regarding their roles in the rapidly growing AI sector. Microsoft’s involvement with startup Inflection AI is under scrutiny, particularly how the contract was structured to potentially circumvent acquisition rules. Microsoft has asserted its compliance with all regulations amid the investigation.
The Biden administration’s push for increased regulation in the AI industry reflects concerns that major tech companies could dominate the sector, prompting the FTC to investigate Microsoft, Amazon, and Google’s investments in OpenAI and other AI startups. FTC Chair Lina Khan emphasized the need to scrutinize agreements that could give dominant companies an unfair advantage, undermining competition.
Nvidia’s investigation will focus on its chip manufacturing and distribution agreements, given the company’s significant stock price growth. The FTC and DOJ have not commented on the investigations, and Inflection AI has not responded to requests for comment. This regulatory action marks a significant step in addressing concerns about the concentration of power in the AI industry, with efforts to ensure fair competition and compliance with antitrust laws.
Article Source
https://thehill.com/policy/technology/4707902-doj-ftc-set-antitrust-probe-microsoft-nvidia-openai-reports/amp/
