Daily Management Review

US Authorities To Launch Antitrust Investigations Against Nvidia, Microsoft, And OpenAI: Reports


US Authorities To Launch Antitrust Investigations Against Nvidia, Microsoft, And OpenAI: Reports
According to the New York Times on Wednesday, which cited people familiar with the matter, the U.S. Justice Department and the Federal Trade Commission have reached an agreement that permits them to move forward with antitrust investigations into the dominant roles that Microsoft, OpenAI, and Nvidia play in the artificial intelligence industry.
According to the article, the FTC will look into the actions of Microsoft and OpenAI, while the U.S. Department of Justice will lead the investigation into potential antitrust violations by Nvidia. The parent company of OpenAI is a nonprofit organisation, but Microsoft has invested $13 billion, or 49% of the company, in a for-profit subsidiary.
In other areas, there is also unofficial scrutiny around the Microsoft-OpenAI relationship.
According to the article, which cited two persons with knowledge of the situation, the regulators reached an agreement over the course of the previous week, and it is anticipated to be finalised in the days ahead.
The Wall Street Journal reported on Thursday that the FTC is reportedly investigating Microsoft's $650 million acquisition of AI firm Inflection AI, citing a person with knowledge of the situation.
The actions indicate increased regulatory monitoring of the AI sector. The FTC requested OpenAI, Microsoft, Alphabet, Amazon, and Anthropic to provide information on recent agreements and investments between cloud service providers and generative AI businesses in January.
The Federal Trade Commission launched an inquiry into OpenAI in July of last year because to allegations that the company had violated consumer protection regulations by endangering personal information and reputations.
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At an AI conference last week, U.S. antitrust commissioner Jonathan Kanter opened a new tab and mentioned "structures and trends in AI that should give us pause." He said that because the technology depends on vast amounts of data and processing capacity, it can provide a significant advantage to already dominant corporations.
Requests for comment made outside of regular business hours were not immediately answered by Microsoft, OpenAI, Nvidia, the Justice Department, or the Federal Trade Commission.