From The New York Times Company: 2024-06-05 23:38:59

Federal regulators have reached a deal to pursue antitrust investigations into Microsoft, OpenAI, and Nvidia’s dominant roles in the A.I. industry, a move highlighting the increasing regulatory scrutiny of powerful tech. The Justice Department and FTC will lead investigations into possible antitrust violations involving billions in investments and strategic partnerships in the A.I. sector.

Amid the acceleration of A.I. technology with the potential to disrupt various aspects of society, US regulators have intensified their scrutiny of big tech companies involved in the sector, including Nvidia, Microsoft, and OpenAI. The Biden administration has been actively trying to rein in the power of the biggest tech giants in various probes related to antitrust violations in the industry.

As generative A.I. technology began to rapidly advance in 2022, creating industry buzz, Nvidia, Microsoft, and OpenAI have now come under increased regulatory scrutiny by the FTC and Justice Department. This new deal to investigate these A.I. giants comes after earlier investigations into other tech giants, signaling a broader trend in regulating emergent technologies.

The United States remains behind Europe in establishing comprehensive regulations for artificial intelligence, despite the potential societal repercussions associated with its use. Officials in the EU established rules last year to govern the use of A.I., focusing on mitigating the riskiest applications. Senators in Washington have recommended substantial funding to lead in A.I. development but refrained from proposing new regulations.

Nvidia, Microsoft, and OpenAI have emerged as key players in the A.I. boom, sparking concerns of their market dominance. Nvidia’s GPUs have become widely adopted in A.I. applications, leading to significant sales growth and a soaring stock price. Microsoft owns a substantial stake in OpenAI, integrating cutting-edge A.I. technology into their products like Bing, PowerPoint, and Word. Industry leaders have expressed concerns over the potential monopolistic practices of these tech giants.



Read more at The New York Times Company: U.S. Clears Way for Antitrust Inquiries of Nvidia, Microsoft and OpenAI