The FTC's investigation will focus on how these investment deals change the competitive landscape and whether they violate any laws. Traditionally, regulators have targeted antitrust lawsuits against deals where tech giants buy rivals or use acquisitions to venture into new businesses. However, stakes bought in startups have not been regularly challenged. The FTC will ask the companies to provide internal documents that could reveal more about the deals and their potential effects on competition.
Key takeaways:
- The Federal Trade Commission (FTC) has initiated an inquiry into the investments made by Microsoft, Amazon, and Google in AI start-ups OpenAI and Anthropic.
- The inquiry aims to understand the influence of these tech giants on the start-ups and how their investments could alter the competitive landscape in the AI industry.
- While regulators have typically focused on antitrust lawsuits against outright acquisitions by tech giants, this inquiry will examine the impact of their stakes in start-ups.
- The FTC will ask the companies to provide internal documents that could shed light on the deals and their potential impact on competition.