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DOJ, FTC Entangled in Jurisdiction Dispute Over Microsoft’s Open AI partnership

Jan 20, 2024 - techtimes.com
The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are in a dispute over the authority to investigate OpenAI and its partnership with Microsoft. The agencies are trying to determine who should scrutinize OpenAI, particularly the creators of ChatGPT, on antitrust grounds. The dispute is complicating one of the most significant tech partnerships in recent years, as Microsoft has been investing billions in OpenAI. The discussions mainly concern Microsoft and OpenAI and do not include a broader conversation about which agency should handle AI issues.

The dispute began when Microsoft and OpenAI did not report their deal for review by federal antitrust regulators, as is typically required. Doubts have arisen about Microsoft's claim that it does not control OpenAI. Regulators are particularly concerned about whether this partnership gives both companies an unfair advantage in the rapidly evolving AI market. While there is no specific law preventing both agencies from conducting simultaneous investigations, they have traditionally avoided doing so to maintain cooperation.

Key takeaways:

  • The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are in a dispute over who has the authority to investigate OpenAI and its collaboration with Microsoft.
  • OpenAI co-founder Greg Brockman announced that ChatGPT Voice will be free to all users amidst the controversy.
  • Microsoft and OpenAI did not report their deal for review by federal antitrust regulators, raising concerns about potential unfair advantages in the AI market.
  • A separate interagency debate has emerged focusing on the appropriate authority to investigate these companies for their alleged illegal content scraping practices used for AI training.
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