Antitrust regulators in the United States are increasing their focus on the top AI developers in the country. The Justice Department and the Federal Trade Commission have launched investigations into Nvidia, Microsoft, and OpenAI. The Justice Department will lead the investigation into Nvidia’s dominance in the market for AI microprocessors, while the FTC will investigate Microsoft and OpenAI.
This increased scrutiny is part of the Biden administration’s broader efforts to address anti-competitive behavior across various industries, including technology. The administration has previously taken action against tech giants such as Apple and Amazon, and has raised concerns about Microsoft’s acquisition of Activision Blizzard potentially creating a monopoly in the gaming market.
The FTC has also expressed interest in AI, initiating a research project last year focused on OpenAI’s data collection practices. The agency is now investigating deals between tech companies and AI developers, including Microsoft’s investment in OpenAI and Alphabet’s relationship with the AI developer anthropic.
The FTC’s investigation into Microsoft has expanded to include a deal the tech giant made with AI developer Tipping AI. The agency is questioning why Microsoft chose to pay a $650 million licensing fee to resell Inflection’s technology instead of acquiring it. Microsoft has defended the deal, stating that it allowed them to hire Inflection AI staff and accelerate the development of their AI chat interface, Microsoft Copilot.
Antitrust expert Michael Carrier suggests that regulators will focus on the substance of Microsoft’s deal with InflectionAI to determine if it violates antitrust laws. Both companies received subpoenas from the FTC seeking information related to the deal.
Nvidia has declined to comment on the reports, and Microsoft maintains that they have complied with their legal obligations. The investigations highlight the increasing scrutiny on AI developers and tech companies by US antitrust regulators.
Alexis Keenan is a legal reporter for Yahoo Finance, covering the latest developments in technology impacting the stock market and financial news. Follow Alexis on Twitter @alexiskweed for more updates on tech news. For the latest financial and business news, visit Yahoo Finance.
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