The US federal regulators, the Justice Department, and the Federal Trade Commission have reportedly agreed to investigate the dominance of major players in the AI industry such as Microsoft, Nvidia, and OpenAI. This move comes amid concerns about potential antitrust violations and the impact of AI on various aspects of daily life.
The investigation will focus on Nvidia, the leading AI chipmaker, for potential antitrust violations, while OpenAI and Microsoft will also undergo scrutiny from the FTC. OpenAI, known for creating the ChatGPT chatbot, and Microsoft, which has invested heavily in OpenAI, will face examination of their practices.
The probe was prompted by the recent advancements in generative AI capabilities, including the ability to create realistic text, images, and audio. This development has raised concerns about the practices of these tech giants in the AI industry.
This is not the first time that OpenAI has faced investigation by the FTC. The agency previously looked into OpenAI’s data collection practices and has now expanded its inquiry to include partnerships between tech giants and AI startups like Microsoft and OpenAI, as well as Google and Anthropic.
The FTC and Justice Department have finalized their agreement to investigate these companies, with FTC Chair Lina Khan emphasizing the importance of identifying potential AI issues early on to prevent future complications. The agencies aim to address problems at the inception stage rather than waiting for them to become deeply entrenched over time.
Microsoft and Nvidia, as the first and second companies in terms of market cap, respectively, are closely watched in the AI industry. Apple, rumored to announce an AI partnership with OpenAI, and Google also face scrutiny due to their involvement in the sector.
While the partnership between OpenAI and Microsoft has attracted attention not only in the US but also in other markets like the UK and the EU, Europe has decided against launching a formal probe into the matter.
Overall, the investigation into Microsoft, Nvidia, and OpenAI reflects the growing concerns about anti-competitive practices in the AI industry and the potential impact of AI advancements on various aspects of daily life. As regulatory scrutiny intensifies, these tech giants will need to navigate this challenging landscape with transparency and compliance to ensure a fair and competitive market for AI technologies.
