- The FTC is investigating major AI companies’ investments and partnerships to assess their impact on innovation and competition in the AI industry.
- The FTC ordered Amazon, Alphabet, Microsoft, Anthropic and OpenAI to provide details about their multibillion dollar AI deals, concerned they could limit access to key AI resources.
- International regulators like the U.K.’s antitrust agency and European Commission are also scrutinizing Big Tech’s AI collaborations to ensure they don’t stifle innovation.
The U.S. Federal Trade Commission (FTC) has launched an investigation into the major artificial intelligence (AI) companies and their investments and partnerships. The goal is to understand the impact these deals could have on innovation and competition in the rapidly evolving AI landscape.
FTC Orders Information from AI Leaders
The FTC has ordered Amazon, Alphabet, Microsoft, Anthropic and OpenAI to provide details about their AI investments and partnerships. Specifically, the companies must share information about deals with generative AI firms and major cloud providers. The FTC wants to analyze the reasoning behind these multibillion dollar deals.
Concerns Over Competition and Access to Resources
In announcing the investigation, FTC Chair Lina Khan expressed concerns about the competitive implications of partnerships between AI developers and cloud providers. The regulator wants to assess whether these deals could limit access to the technology, data and computing power needed to develop AI systems.
Employing Tools to Compel Compliance
To extract the details it needs, the FTC is invoking its 6(b) authority to conduct broad studies of entire industries. This allows the agency to force companies to provide requested information without alleging any specific legal violations. The investigation is independent of the FTC’s law enforcement arm.
International Attention on AI Collaboration
The FTC is not alone in scrutinizing Big Tech’s AI moves. The U.K.’s antitrust regulator may also open an inquiry into Microsoft’s partnership with OpenAI. The European Commission is considering investigating the collaboration as well. Authorities want to ensure these deals don’t stifle AI innovation.
The Booming AI Industry
As AI delivers transformative new capabilities, technology giants are racing to be at the forefront. Massive investments in AI developers and strategic partnerships give companies access to vital resources and talent. However, regulators worry about the competitive implications. With the FTC investigation just beginning, the AI industry faces growing scrutiny.
