By Michael Scott
The Federal Trade Commission probes artificial intelligence investments and collaborations by major tech firms by concentrating on their strategic implications and competitive effects.
The US Federal Trading Commission (FTC) claims it will probe major artificial intelligence (AI) players concerning their collaborations and investments. They include Alphabet, OpenAI, Amazon, Anthropic, and Microsoft.
FTC to Probe AI Use
A January 25 announcement revealed that the agency had given orders to the five firms, asking them to offer data concerning agreements with generative artificial intelligence firms and top cloud service providers. Besides, it required them to provide information about these agreements’ strategic reasoning.
The Federal Trade Commission sent the orders to OpenAI, Google, Amazon, Microsoft, and Anthropic. All these firms were involved in multibillion-dollar investments.
In a tech summit planned by FTC, chair Lina Khan noted that the issued orders are a ‘scrutiny into the collaborations and investments being developed between artificial intelligence developers and top cloud service providers.’
Organizations are using different approaches to creating and utilizing artificial intelligence. This entails creating partnerships and making direct investments in artificial intelligence developers to acquire access to inputs and technologies critical for this technology’s development.
The FTC will utilize its power to implement a 6 (b) study, allowing it to probe artificial intelligence firms autonomously of its law enforcement division and give civil investigative demands. In other words, the agency can force forms to provide specific reports and give replies to inquiries regarding their activities.
Factors Contributing to Fierce Competition in AI Industry
The Federal Trade Commission wants information concerning the effect of such collaborations on competition for artificial intelligence resources and inputs. This includes competitive forces associated with critical products and services for generative artificial intelligence.
Further, the FTC intends to access data shared with government entities, including overseas ones, concerning probes, data requests, or other inquiries linked to the topics.
The UK’s antitrust agency also plans to initiate an inquiry into Microsoft’s major partnership with OpenAI. Microsoft countered by highlighting its non-voting observer role on the ChatGPT developer’s board.
Further, the European Commission has revealed its plan to scrutinize if Microsoft’s investment in OpenAI can be evaluated based on the European Union Merger Regulation.
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