The U.S. Federal Trade Commission (FTC) has announced its decision to investigate investments and partnerships involving major artificial intelligence (AI) companies, including Amazon, Alphabet, Microsoft, Anthropic, and OpenAI. The FTC issued orders to these companies, requiring them to provide information about their agreements with generative AI companies and significant cloud service providers, along with the strategic rationale behind these partnerships. The orders were sent to firms involved in substantial investments, such as Microsoft, OpenAI, Amazon, Anthropic, and Google. FTC Chairwoman Lena Khan explained that the agency's move is part of a market investigation into the growing collaborations between AI developers and major cloud service providers.
Businesses are adopting various approaches to develop and utilize AI, including forming partnerships and making direct investments in AI developers to access the necessary technology and inputs for AI development. The FTC, utilizing its authority to conduct 6(b) studies, aims to investigate AI companies independently of law enforcement through civil investigative requests. This allows the agency to compel companies to submit specific reports and respond to inquiries about their operations. The FTC seeks comprehensive information about the impact of these partnerships on competition for AI inputs and resources, including the competitive dynamics related to essential products and services required for AI generation.
As part of the investigation, the FTC is also interested in obtaining information shared with any other government entity, including foreign government entities, regarding investigations, requests for information, or other inquiries related to these topics. In a related development, UK antitrust authorities are contemplating an investigation into Microsoft's major collaboration with OpenAI. Microsoft responded by clarifying its non-voting observer role on the board of directors of OpenAI, the maker of ChatGPT. Additionally, the European Commission has expressed its intention to investigate whether Microsoft's investment in OpenAI can be reviewed under EU merger regulations.
