DOJ, FTC to probe OpenAI, Microsoft, Nvidia over AI competition fairness DOJ, FTC to probe OpenAI, Microsoft, Nvidia over AI competition fairness
The agencies are dividing roles in a deal that could conclude this week.
1 min read
Updated: Jun. 7, 2024 at 12:24 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are preparing to launch investigations into major AI companies over anticompetition issues, Politico reported on June 6.
Under the agreement, the DOJ will probe Nvidia and its role in supplying high-end semiconductors to the AI industry. Estimates suggest the tech giant controls up to 90% of the high-end AI chip market.
Meanwhile, the FTC will examine whether Microsoft and OpenAI have an unfair advantage in AI and large language models (LLM) technology.
The FTC and DOJ will keep their respective authorities over Amazon and Google. The two firms reportedly face pending AI-related investigations separate from existing antitrust cases.
Another investigation is reportedly pending. According to a June 6 report by the Wall Street Journal, the FTC is probing a deal between Microsoft and Inflection AI to determine if it was structured to dodge a government antitrust review.
Roles limited investigations
The DOJ and FTC have not confirmed or denied the existence of any investigation.
Politico said the lack of an agreement has limited each agency’s ability to investigate.
In July 2023, the FTC opened a case concerning OpenAI’s possible violations of consumer protection laws, alleging several issues related to its AI models.
In January, the FTC ordered Google, Anthropic, Amazon, Microsoft, and OpenAI to provide information. The agency sought details about the companies’ investments and partnerships and competition for AI inputs and resources. The FTC said it could use the information in future actions.
In March, the UK’s Competition and Markets Authority (CMA) announced a probe of some of the same companies, including Microsoft, Amazon, and Inflection.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Nvidia
Nvidia Corporation is a multinational technology company based in Santa Clara, California, that was founded in Delaware.
Microsoft
Microsoft is an American multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers.
OpenAI
OpenAI is an AI research and deployment company committed to ensuring that general-purpose artificial intelligence helps all of humanity.
Amazon
Amazon.com, Inc., commonly known as Amazon, stands as an American multinational technology company renowned for its diverse portfolio encompassing e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
Google LLC is an American multinational technology company that is most commonly known for its search engine that was founded by Sergey Brin and Larry Page in 1998.
Anthropic
Anthropic is a US-based artificial intelligence (AI) startup and public-benefit corporation founded by former members of OpenAI in 2021.