US regulators are launching an investigation into major artificial intelligence companies, including Microsoft, OpenAI, and Nvidia, to ensure fair competition within the industry and prevent monopolies. The Department of Justice and the Federal Trade Commission have reached an agreement to investigate these companies, with the Justice Department focusing on Nvidia’s potential antitrust violations and the FTC looking into OpenAI and Microsoft’s recent deal with Inflection AI. This move comes as regulators express concerns about the power of tech giants in controlling the AI market and the competitive landscape.
The FTC has previously shown interest in the AI market, ordering companies like OpenAI, Microsoft, Alphabet, Amazon, and Anthropic to provide information on recent investments and partnerships involving generative AI companies and cloud service providers. Last year, the FTC initiated an investigation into OpenAI over allegations of breaching consumer protection laws.
As Nvidia’s valuation surpasses $3 trillion, surpassing Apple for the first time, the reported collaboration between the Justice Department and the FTC reflects a more collaborative approach under the Biden administration. This partnership aims to address anti-competitive behaviors in the AI sector and prevent companies from controlling the market.
Microsoft has expressed confidence that they have complied with antitrust obligations related to their deal with Inflection AI. Both Nvidia and OpenAI declined to comment on the investigation. Overall, the joint efforts between the Justice Department and the FTC reflect a shared responsibility in addressing potential antitrust violations in the AI industry and ensuring fair competition.
Article Source
https://amp.theguardian.com/business/article/2024/jun/06/microsoft-openai-and-nvidia-investigated-over-possible-breach-of-antitrust-laws
