The US Federal Trade Commission (FTC) has initiated an inquiry into the investments and partnerships of Alphabet Inc., Amazon.com Inc., and Microsoft Corp. with artificial intelligence startups Anthropic PBC and OpenAI Inc. The study, which was announced on Thursday, aims to gather insights into the impact of AI development on the competitive landscape.
Subpoenas Issued to Tech Giants
The FTC has issued subpoenas to Alphabet Inc., Amazon.com Inc., and Microsoft Corp. to obtain information regarding their investments and collaborations with Anthropic PBC and OpenAI Inc. These subpoenas are part of the agency’s efforts to understand the dynamics of AI investments and partnerships, especially in light of the substantial financial transactions involved.
Concerns Over Dominant Tech Companies
Antitrust enforcers globally have expressed concerns over the growing dependence of promising AI startups on established tech giants for financing and infrastructure. The FTC’s inquiry targets over $19 billion in investments made by Microsoft, Amazon, and Google, solidifying alliances between major cloud service providers and leading AI software developers.
FTC’s Monitoring and Warnings
During a public workshop, FTC Chair Lina Khan emphasized the agency’s vigilant monitoring of the AI industry. Khan warned that claims of innovation should not serve as a shield for potential violations of laws, asserting that there are no exemptions for AI companies from existing legal frameworks.
Tech Giants’ Responses
While Alphabet’s Google and Anthropic declined to comment, Microsoft, Amazon, and OpenAI have not yet responded to requests for comment. The silence from these significant players underscores the sensitivity of the inquiry and its implications for the AI landscape.
Tech Giants’ Investments in AI Startups
Microsoft’s substantial investments in OpenAI, totaling over $13 billion, underscore the deepening integration between the two companies. Similarly, Anthropic, founded by former OpenAI employees, secured significant funding from Alphabet’s Google and Amazon, highlighting AI’s strategic importance in major tech players’ agendas.
FTC’s Authority and Process
The FTC is conducting this inquiry under its 6(b) authority, allowing it to issue subpoenas for market studies. While the agency’s primary goal is research-oriented, the information gathered could lead to official investigations or support existing probes, such as the FTC’s inquiry into OpenAI’s ChatGPT conversational AI bot.
International Scrutiny on AI Partnerships
Beyond the US, international regulatory bodies are also scrutinizing agreements between tech giants and AI developers. The European Commission, for instance, is investigating the impact of such partnerships on market dynamics, reflecting broader concerns over competition and innovation in the AI sector.