FTC and DOJ reportedly opening antitrust investigations into Microsoft, OpenAI, and Nvidia
How have the responsibilities for these investigations been divided between the FTC and the DOJ?
The responsibilities for the investigations into potential antitrust violations of Microsoft, OpenAI, and Nvidia have been divided between the Federal Trade Commission (FTC) and the Department of Justice (DOJ) as follows:
- The DOJ will lead the inquiries into Nvidia, the dominant figure in making the chips that power much of the AI boom.
- The FTC will look into the deal between OpenAI and its largest investor, Microsoft.
This division of duties allows both agencies to focus on specific aspects of the potential antitrust violations in the artificial intelligence industry.
What prompted the FTC to begin investigating technology companies' investments into smaller AI companies in January of this year?
The FTC began investigating technology companies' investments into smaller AI companies in January this year due to concerns over potential antitrust issues2. The agency sent letters to companies including Alphabet, Amazon, Anthropic, Microsoft, and OpenAI to gather information on their investments and partnerships in the AI sector. The goal of the investigation is to ensure that these investments and partnerships do not distort innovation or undermine fair competition in the rapidly growing field of generative AI.
What specific antitrust violations are the FTC and DOJ investigating in relation to Microsoft, OpenAI, and Nvidia?
The FTC and DOJ are investigating potential antitrust violations related to the investments made by technology companies into smaller AI companies. The DOJ will lead inquiries into Nvidia, focusing on whether the company has violated antitrust laws. The FTC will look into the deal between OpenAI and its largest investor, Microsoft, examining the conduct of both companies. The FTC is also already investigating OpenAI's data collection practices.