The Federal Trade Commission announced Thursday it is launching an inquiry that will “scrutinize” investments made by Seattle-area tech giants Microsoft and Amazon in AI startups OpenAI and Anthropic.
The inquiry “will help the agency deepen enforcers understanding of the investments and partnerships formed between generative AI developers and cloud service providers,” the FTC said in a press release. It also includes Alphabet, an investor in Anthropic.
It’s the latest move by the FTC taking aim at Big Tech and its power in the market as the AI race continues to gain steam.
“History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity,” FTC Chair Lina Khan said in a statement. “Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.”
Microsoft has poured more than $10 billion into OpenAI, makers of ChatGPT. Microsoft’s Azure is the exclusive cloud provider to OpenAI.
Amazon said in September it would invest up to $4 billion in Anthropic, an OpenAI rival. Amazon’s investment included a commitment by Anthropic to make Amazon Web Services its main cloud provider.
These partnerships give Microsoft and Amazon new momentum in deploying AI in its own products and for its cloud customers.
“The U.S. has assumed a global AI leadership position because important American companies are working together,” Rima Alaily, corporate vice president with Microsoft, said in a statement. “Partnerships between independent companies like Microsoft and OpenAI, as well as among many others, are promoting competition and accelerating innovation. We look forward to providing the FTC with the information it needs to complete its study.”
Story updated with comment from Microsoft.
