U.S. antitrust enforcers are intensifying their efforts to combat the aggressive tactics of tech giants that seek to dominate the field of artificial intelligence (AI). There is increasing concern that a small number of companies could stifle competition in this rapidly evolving technology sector.
The Federal Trade Commission and Justice Department have struck a deal to launch antitrust investigations into Microsoft, OpenAI, and Nvidia. This marks a significant step towards increased regulatory oversight of these companies’ activities in the AI industry. The details of these probes are not yet public, but they are expected to be finalized in the coming days.
The agreement between the two agencies resolves a longstanding dispute over how to divide oversight of AI companies. This has limited the government’s ability to address the rapidly changing landscape of corporate competition. The Justice Department will investigate Nvidia, a company that has risen to become the second-largest publicly traded company in the U.S., by leveraging its strengths in AI chips. Meanwhile, the FTC will lead inquiries into Microsoft and OpenAI, including their recent deal involving the ChatGPT chatbot.
In addition to these investigations, the FTC is also looking into whether Microsoft structured a $650 million deal with Inflection AI in a way that circumvented antitrust reviews mandated by federal law. This deal resulted in many Inflection AI employees joining Microsoft to work on its Copilot project. The FTC is examining whether Microsoft intentionally designed the transaction to evade regulatory scrutiny.
Microsoft has stated its compliance with legal reporting requirements for mergers under the Hart-Scott-Rodino Act, asserting that they take these obligations seriously. Both Nvidia and OpenAI have declined to comment on the matter. These developments signal a renewed focus by U.S.,
