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U.S. Regulators Reach Agreement For Antitrust Probes Into Microsoft, OpenAI, and Nvidia
Probing Dominant Roles in the AI Sector
The Justice Department and the Federal Trade Commission (FTC) have brokered a deal to conduct antitrust investigations into the significant roles Microsoft, OpenAI, and Nvidia hold in the artificial intelligence industry, according to people in the know, The New York Times reported.
Division of Investigation
As part of the agreement, the Department of Justice will spearhead the investigation into potential antitrust law breaches by Nvidia. Simultaneously, the FTC will scrutinize the behavior of both OpenAI and Microsoft, as per the report.
Microsoft’s Investment in OpenAI
While the parent organisation of OpenAI is nonprofit, Microsoft has plowed $13 billion into a profit-oriented subsidiary, gaining a 49% stake.
Global Scrutiny
The alliance between Microsoft and OpenAI faces informal examination in other territories too.
Deal Completion and Future Investigations
The deal was struck in the past week and anticipated to conclude in the forthcoming days, two people privy to the situation informed. The FTC is also allegedly examining Microsoft’s $650 million agreement with AI startup Inflection AI, as per The Wall Street Journal.
Regulatory Scrutiny of the AI Sector
These maneuvers indicate an escalating regulatory inspection of the AI arena. In January, the FTC required OpenAI, Microsoft, Alphabet Amazon, and Anthropic to provide details on recent investments and collaborations involving generative AI firms and cloud service providers.
FTC’s Previous Investigation
In July of the previous year, the FTC had initiated an investigation into OpenAI on allegations of non-compliance with consumer protection laws, which put personal reputations and data in jeopardy.
AI: A Potential Advantage for Dominant Companies
Jonathan Kanter, U.S. antitrust chief, last week expressed concern over “structures and trends in AI that should give us pause”. He stated at an AI conference that the technology’s reliance on vast volumes of data and computing power can bestow an added edge to already powerful firms.
Microsoft, OpenAI, Nvidia, the Justice Department, and FTC have yet to provide any comment in response to these matters.
© 2024 Thomson/Reuters. All rights reserved.
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