US Regulator Initiates Probe into Tech Giants' Investments in AI Startups
The Federal Trade Commission (FTC), a prominent US antitrust regulator, announced on Thursday the commencement of an inquiry into investments made by major tech companies, including Microsoft, Google, and Amazon, in generative artificial intelligence (AI) startups such as OpenAI and Anthropic.
The inquiry is part of broader efforts by regulatory authorities to ensure that oversight keeps pace with the rapid developments in artificial intelligence, preventing dominant players from excluding competitors in a sector that promises disruption across multiple industries.
FTC head Lina Khan stated, "Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition."
A key concern is that generative AI, capable of producing human-level content within seconds, demands substantial computing power, a resource that major tech companies, particularly Amazon, Microsoft, and Google, possess uniquely through their cloud-based data centers.
Microsoft has been at the forefront of the generative AI revolution, investing a reported $13 billion in OpenAI, the entity behind ChatGPT. Following a boardroom dispute that temporarily sidelined OpenAI's CEO Sam Altman, Microsoft now holds a non-voting seat on OpenAI's board.
Anthropic, founded by former OpenAI staff, received significant investments from both Google and Amazon in the previous year and is considered a potential major player in the emerging generative AI sector.
The FTC's scrutiny will focus on the partnerships and collaborations between these tech giants and generative AI startups, especially considering the potential impact on fair competition.
FTC studies aim to gain a deeper understanding of market trends and business practices, with findings potentially guiding the commission toward legal action.
In a separate development, the European Commission initiated its own preliminary study into Microsoft's multibillion-dollar investment in OpenAI, exploring the possibility of it being a disguised merger.
Anthropic, OpenAI, Amazon, and Google did not immediately respond to requests for comment.