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Report: Google Asks FTC to End Microsoft-OpenAI Cloud Deal | PYMNTS.com

Dec 11, 2024 - pymnts.com
Google has reportedly requested the Federal Trade Commission (FTC) to terminate Microsoft's exclusive agreement to host OpenAI's technology on its cloud servers. This request follows the FTC's inquiry into Microsoft's business practices as part of a broader investigation. The Information reported that cloud service providers like Google want to host OpenAI's AI models to allow their customers access without relying on Microsoft servers. Companies using OpenAI's technology through Microsoft may incur additional charges if they do not use Microsoft's servers.

The FTC is investigating alleged anticompetitive practices in Microsoft's cloud computing business, focusing on claims that Microsoft leverages its Office 365 software to benefit its Azure cloud service. Microsoft has requested an investigation into the FTC following reports of leaked details about the antitrust probe. The FTC has expressed concerns about the market power of a few cloud service providers and their impact on competition and data security. In November 2023, the FTC noted that its request for information on cloud computing providers' business practices highlighted several issues.

Key takeaways:

  • Google has reportedly requested the FTC to terminate Microsoft's exclusive agreement to host OpenAI's technology on its cloud servers.
  • The FTC is investigating Microsoft's business practices, focusing on potential anticompetitive behavior in its cloud computing operations.
  • Companies using OpenAI's technology through Microsoft may incur additional charges if they do not utilize Microsoft's servers.
  • The FTC is concerned about the market power of major cloud service providers and is seeking comments on their business practices that could affect competition and data security.
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