FTC looking into investments by tech giants Microsoft, Google into AI startups like OpenAI, Anthropic

The Federal Trade Commission (FTC) has announced an investigation into the investments made by Microsoft, Amazon, and Google in artificial intelligence startups OpenAI and Anthropic.

This inquiry aims to better understand how these investments impact competition. The FTC’s primary focus is to assess whether these investments grant the tech giants undue influence over their smaller AI counterparts, potentially leading to reduced competition and stifled innovation. The agency will examine the terms of the deals, including any rights to board seats or control over decision-making within the startups.

In response to the FTC’s inquiry, the tech giants have maintained that their investments foster competition and accelerate AI innovation. Microsoft, for instance, argues that its partnership with OpenAI has led to significant advancements in AI technology.

However, critics remain cautious, raising concerns about potential conflicts of interest inherent in such partnerships, where big tech companies might prioritize their interests over the broader development of AI.

The FTC’s inquiry can be a crucial step in understanding the complex dynamics of the AI landscape. Its findings could lead to new antitrust laws and regulations addressing the challenges big tech’s involvement in AI poses.

The FTC’s inquiry is ongoing, and its long-term implications for the tech landscape remain to be seen.

More here.