US regulators investigate Microsoft, OpenAI, and NVIDIA over antitrust concerns
What's the story
The US Justice Department and the Federal Trade Commission (FTC) have commenced antitrust investigations into Microsoft, OpenAI, and NVIDIA, as reported by The New York Times. This decision comes in light of these companies' significant influence in the artificial intelligence industry. The Justice Department will primarily focus on NVIDIA's potential violation of antitrust laws while the FTC will examine the conduct of OpenAI and Microsoft.
Partnership review
Microsoft's investment in OpenAI under scrutiny
OpenAI, which operates under a non-profit parent company, has seen Microsoft invest $13 billion for a reported 49% stake in its for-profit subsidiary. This partnership is also informally under review in other regions. The agreement between the regulators to initiate these investigations is expected to be finalized in the coming days.
Deal investigation
FTC probes Microsoft's deal with Inflection AI
The Federal Trade Commission (FTC) is also reportedly investigating Microsoft's $650 million deal with AI startup Inflection AI, according to The Wall Street Journal. This investigation forms part of the broader scrutiny into the tech giant's conduct and business practices in the artificial intelligence industry. The outcome of this investigation could have significant implications for future deals in this rapidly evolving sector.