Microsoft, OpenAI, and NVIDIA are under the microscope of US regulators for potential antitrust and antimonopoly law violations. The US Department of Justice (DoJ) and the Federal Trade Commission (FTC) are jointly investigating the dominant roles of these companies in the AI industry.
The DoJ will focus its investigation on NVIDIA, the leading manufacturer of chips for training and operating AI systems, to determine if the company has violated antitrust laws designed to promote fair competition and prevent monopolies. Meanwhile, the FTC will examine OpenAI, known for its widely-used ChatGPT chatbot, and Microsoft, OpenAI’s largest investor, for similar violations.
Adding to Microsoft’s scrutiny, the FTC is also probing a recent deal with AI startup Inflection AI. There are concerns that Microsoft structured the deal to bypass potential antitrust review due to its relationship with OpenAI. The deal involved hiring Inflection’s CEO to lead a new AI division and licensing Inflection’s AI software for $650 million.
The FTC has been actively monitoring the AI market, requesting information from several tech giants about their investments and partnerships with generative AI companies. Last year, the FTC launched an investigation into OpenAI over alleged violations of consumer protection laws related to personal data.
Jonathan Kanter, head of the DoJ’s antitrust division, emphasized the need to address potential monopolistic practices in the AI sector. The collaboration between the DoJ and FTC reflects a concerted effort to ensure competitive practices and prevent monopolies in the rapidly expanding AI industry.
In response to the investigation, Microsoft expressed confidence and commitment to complying with all obligations. As the AI industry continues to grow, regulatory oversight becomes increasingly crucial to foster innovation while safeguarding consumer interests.
The outcomes of these investigations could significantly impact the future of AI development and the broader technology landscape, highlighting the importance of vigilant regulatory oversight in the AI sector.