DOJ, FTC to probe OpenAI, Microsoft, Nvidia over AI competition fairness


The
Department
of
Justice
(DOJ)
and
the
Federal
Trade
Commission
(FTC)
are
preparing
to
launch
investigations
into
major
AI
companies
over
anticompetition
issues,
Politico
reported
on

June
6.

Under
the
agreement,
the
DOJ
will
probe

Nvidia
and
its
role
in
supplying
high-end
semiconductors
to
the
AI
industry. Estimates
suggest
the
tech
giant
controls
up
to
90%
of
the
high-end
AI
chip
market.

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Meanwhile,
the
FTC
will
examine
whether

Microsoft
and

OpenAI
have
an
unfair
advantage
in
AI
and
large
language
models
(LLM)
technology.

The
FTC
and
DOJ
will
keep
their
respective
authorities
over

Amazon
and

Google.
The
two
firms
reportedly
face
pending
AI-related
investigations
separate
from
existing
antitrust
cases.

Another
investigation
is
reportedly
pending.
According
to
a

June
6
report
by
the
Wall
Street
Journal,
the
FTC
is
probing
a
deal
between
Microsoft
and
Inflection
AI
to
determine
if
it
was
structured
to
dodge
a
government
antitrust
review.

Roles
limited
investigations

The
DOJ
and
FTC
have
not
confirmed
or
denied
the
existence
of
any
investigation.

Politico
said
the
lack
of
an
agreement
has
limited
each
agency’s
ability
to
investigate.

In

July
2023,
the
FTC
opened
a
case
concerning
OpenAI’s
possible
violations
of
consumer
protection
laws,
alleging
several
issues
related
to
its
AI
models.

In

January,
the
FTC
ordered
Google,

Anthropic,
Amazon,
Microsoft,
and
OpenAI
to
provide
information.
The
agency
sought
details
about
the
companies’
investments
and
partnerships
and
competition
for
AI
inputs
and
resources.
The
FTC
said
it
could
use
the
information
in
future
actions.

In
March,
the
UK’s
Competition
and
Markets
Authority
(CMA)

announced
a
probe
of
some
of
the
same
companies,
including
Microsoft,
Amazon,
and
Inflection.

Mentioned
in
this
article
Posted
In:

US,

AI,

Featured

Go to Source
Author: Mike Dalton


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