US regulators are set to initiate antitrust inquiries into leading tech giants Microsoft, Nvidia, and OpenAI, according to reports from the New York Times. The US Justice Department and the Federal Trade Commission have agreed to investigate the dominant roles these companies play in the artificial intelligence industry.
The deal reached between the two regulatory bodies assigns the Department of Justice the task of looking into whether Nvidia has violated antitrust laws, while the FTC will be focusing on the conduct of OpenAI and Microsoft. Microsoft’s investment of $13 billion in a for-profit subsidiary, in which it holds a 49% stake, has raised concerns.
The FTC is specifically interested in Microsoft’s $650 million deal with AI startup Inflection AI, as reported by the Wall Street Journal. This move comes amid a wider trend of regulatory scrutiny into the AI industry. Other regions are also informally scrutinizing the Microsoft-OpenAI partnership.
The recent actions by regulators point to an increasing focus on the AI sector. Earlier this year, the FTC requested information from OpenAI, Microsoft, Alphabet Amazon, and Anthropic regarding investments and partnerships involving generative AI companies and cloud service providers. Last year, the FTC launched an investigation into OpenAI over allegations of violating consumer protection laws.
US antitrust chief Jonathan Kanter highlighted concerns about the structures and trends in AI, emphasizing the significant advantage that massive data and computing power can give to dominant firms. While Microsoft, OpenAI, Nvidia, the Department of Justice, and FTC have not yet commented on these reports, the anticipated investigations could have far-reaching implications for the AI industry.
Frequently Asked Questions (FAQs) Related to the Above News
) What companies are the US DOJ and FTC launching antitrust probes into in the AI industry? (
) The US regulators are launching antitrust inquiries into Microsoft, Nvidia, and OpenAI.
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) What specific roles will the Department of Justice and the Federal Trade Commission play in these investigations? (
) The DOJ will investigate Nvidia, while the FTC will focus on the conduct of OpenAI and Microsoft.
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) What specific concerns are raised about Microsoft's investment in a for-profit subsidiary? (
) Concerns have been raised about Microsoft's $13 billion investment in a for-profit subsidiary, in which it holds a 49% stake.
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) What specific deal with an AI startup is the FTC interested in regarding Microsoft? (
) The FTC is particularly interested in Microsoft's $650 million deal with AI startup Inflection AI.
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) What are some actions that US regulators have taken recently regarding the AI industry? (
) The FTC requested information from several AI companies regarding investments and partnerships involving generative AI companies and cloud service providers. Last year, the FTC also launched an investigation into OpenAI over allegations of violating consumer protection laws.
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) What concerns have been highlighted by US antitrust chief Jonathan Kanter about the AI industry? (
) Jonathan Kanter has emphasized concerns about the structures and trends in AI, pointing out the significant advantage that massive data and computing power can give to dominant firms in the industry.
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