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Lina Khan takes on AI with FTC inquiry into Microsoft’s OpenAI partnership

Jan 25, 2024 - fortune.com
The U.S. Federal Trade Commission (FTC) is investigating the relationships between leading artificial intelligence startups, including OpenAI and Anthropic, and tech giants such as Amazon, Google, and Microsoft, who have invested billions into these startups. The FTC is concerned that these relationships may allow dominant firms to exert undue influence or gain privileged access, undermining fair competition. The FTC has issued orders to five companies to provide information about their investments and partnerships.

The European Union and the United Kingdom have also indicated they may scrutinize the relationship between Microsoft and OpenAI. Microsoft's investment in OpenAI, which includes not just financial support but also computing power for AI training, has raised concerns. The FTC has been working to track and stop illegal behavior in the use and development of AI tools, and has indicated that the consolidation of market power into a few AI leaders also warrants government scrutiny.

Key takeaways:

  • U.S. antitrust enforcers are investigating the relationships between leading artificial intelligence startups like OpenAI and Anthropic and tech giants such as Amazon, Google, and Microsoft that have invested billions into them.
  • The Federal Trade Commission (FTC) has issued compulsory orders to five companies to provide information about their investments and partnerships.
  • The European Union and the United Kingdom have also indicated that they might scrutinize the relationship between Microsoft and OpenAI.
  • Microsoft made a $1 billion investment in OpenAI in 2019, and as part of the deal, Microsoft would supply computing power and get exclusive rights to much of what OpenAI built.
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