The U.S. Justice Department (DOJ) and the Federal Trade Commission (FTC) have reached an agreement paving the way for potential antitrust investigations into tech giants Microsoft, OpenAI, and Nvidia, sources reveal.
The collaboration between the two regulatory bodies highlights growing concerns over the concentrated power within the artificial intelligence (AI) industry. With Nvidiaâs market value recently exceeding $3 trillion and the company holding approximately 80 percent of the AI chip market, the scrutiny is intensifying.
U.S. antitrust enforcers are examining various aspects of the AI landscape, including Big Techâs access to vast data resources used to train AI models, the impact of generative AI on creative industries, and whether strategic partnerships are being leveraged to bypass mandatory merger reviews.
Drawing parallels to a similar 2019 agreement targeting Big Tech, which led to ongoing cases against Meta, Amazon, Apple, and Google, the current move signifies a robust regulatory approach towards maintaining competition in the tech sector.
Under the new agreement, the DOJ will spearhead the investigation into Nvidiaâs potential antitrust violations, while the FTC will focus on OpenAI and Microsoftâs business practices. Notably, Microsoftâs $13 billion investment in OpenAIâs for-profit subsidiary, securing a 49 percent stake, is under particular scrutiny.
Additionally, the FTC is investigating Microsoftâs $650 million deal with AI startup Inflection AI, questioning whether it was structured to circumvent merger disclosure requirements. Microsoft maintains that the arrangement enables the advancement of its Microsoft Copilot project while allowing Inflection to pursue its independent AI ambitions.
Nvidia and OpenAI have yet to comment on the regulatory agreement, while Microsoft has expressed confidence in its compliance with legal obligations.
âThe structures and trends in AI are giving us pause,â stated DOJ antitrust chief Jonathan Kanter at a Stanford University conference, emphasizing the significant advantages that dominant firms hold due to their access to data and computing power.
As regulatory efforts continue, these investigations aim to ensure a competitive and fair landscape in the rapidly evolving AI industry.
Reference(s):
U.S. sets stage for antitrust probes into Microsoft, OpenAI and Nvidia
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