U.S. antitrust enforcers have launched an inquiry into the relationships between major artificial intelligence (AI) startups like OpenAI, the creator of ChatGPT, and tech giants such as Amazon, Google, and Microsoft, which have invested significant sums into these startups.
The investigation focuses on Amazon, Google, and Microsoft and their influence over the rapidly growing generative AI sector, which has driven demand for chatbots like ChatGPT and other AI tools capable of generating novel imagery and sound.
Lina Khan, chair of the U.S. Federal Trade Commission (FTC), announced the inquiry at an AI forum, expressing concerns about whether these partnerships allow dominant firms to exert undue influence or gain privileged access, potentially undermining fair competition.
The FTC has issued compulsory orders to five companies: Amazon, Google, and Microsoft, along with AI startups Anthropic and OpenAI. These orders require them to provide detailed information about their agreements and the decision-making processes behind them.
Microsoft's longstanding relationship with OpenAI is well-documented, while Google and Amazon have recently struck multibillion-dollar deals with Anthropic, another San Francisco-based AI startup founded by former OpenAI leaders.
In response to the inquiry, Google welcomed the FTC's scrutiny and took a subtle swipe at Microsoft's relationship with OpenAI, highlighting the importance of openness and customer choice in cloud services.
Microsoft's Rimy Alaily defended such partnerships as beneficial for competition and innovation, emphasizing the company's commitment to cooperating with the FTC.
The actions by U.S. antitrust enforcers come amid similar investigations in Europe, where concerns have been raised about Microsoft's investments in OpenAI potentially harming competition.
Antitrust advocates have applauded these investigations, criticizing the deals between tech giants and AI startups as quasi-mergers that consolidate market power and hinder competition.
Microsoft's investment in OpenAI, which began in 2019, has been a subject of scrutiny, with questions raised about governance and the impact on competition in the AI sector.
The FTC's inquiry aims to shed light on the competitive dynamics in the AI market, focusing on the strategic rationale behind partnership agreements and the resources needed to develop AI systems.
Companies involved in the inquiry have 45 days to provide comprehensive information to the FTC, including details about partnership agreements, product releases, and key resources for building AI systems.
The investigation reflects growing concerns about the consolidation of market power in the AI sector and the potential impact on competition and innovation.
