US government investigating Nvidia, Microsoft, OpenAI for antitrust violations in AI market

From Yahoo Finance: 2024-06-06 15:01:02

The Justice Department and FTC are investigating leading AI developers Nvidia, Microsoft, and OpenAI for antitrust violations, part of the Biden administration’s effort to rein in monopolistic behavior. Regulators are focused on AI dominance and tech acquisitions, though previous challenges against Apple, Amazon, and Meta have not been successful. The investigation aims to ensure fair competition in the AI market by keeping essential resources accessible and at reasonable prices. The FTC has raised concerns over data collection practices and potential harms caused by large language models of AI developers like OpenAI and Microsoft. Regulators are questioning Microsoft’s deal with AI developer Inflection AI, particularly the $650 million licensing fee paid instead of acquiring the technology outright. Microsoft defends the deal, saying it allowed the company to accelerate development of its AI chat interface, Microsoft Copilot. Both companies received subpoenas from the FTC regarding the agreement. Antitrust experts will focus on the substance of the deal to determine if it violated antitrust laws.



Read more at Yahoo Finance: US prepares for antitrust clash with AI heavyweights Nvidia, OpenAI, Microsoft