According to Cointelegraph: Major artificial intelligence (AI) entities such as Amazon, Alphabet, Microsoft, Anthropic, and OpenAI are to be investigated by the United States Federal Trade Commission (FTC) regarding their investments and alliances in the sector.
In an announcement made on January 25, the FTC declared that it had issued orders to the aforementioned companies, stipulating the sharing of information concerning agreements with generative AI enterprises and significant cloud service providers, along with the strategic motivations underpinning these agreements.
The orders were sent to corporations involved in multi-billion dollar investments. During a tech summit hosted by the FTC, Chair Lina Khan spoke of these orders as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.”
Businesses are employing various strategies to develop and use AI. These include forging partnerships with AI developers, and investing directly in them, to secure access to vital AI development technologies and inputs.
Under its 6(b) study authority, the FTC will independently investigate AI companies, separate from its law enforcement department, and issue civil investigative demands, forcing these companies to submit specific reports and respond to questions about their operations. The FTC is especially interested in the impact of such partnerships on competition for AI resources and inputs.
Simultaneously, other jurisdictions are probing similar areas. The United Kingdom's antitrust authority is contemplating an inquiry into Microsoft's substantial partnership with OpenAI. The European Commission has also hinted at exploring whether this investment could merit review under the EU Merger Regulation.