Microsoft has invested over $13 billion in OpenAI, while Amazon and Alphabet have invested $4 billion and $2 billion respectively in Anthropic. The FTC's investigation will seek information about the specifics of these investments, decisions around new product releases, oversight rights, and analyses of market share and potential for sales growth. This scrutiny is not limited to the US, with the UK's Competition and Markets Authority also examining Microsoft's investment into OpenAI for potential antitrust violations.
Key takeaways:
- The Federal Trade Commission (FTC) is investigating the large investments made by Microsoft, Amazon, and Alphabet into AI startups OpenAI and Anthropic, to understand their impact on competition.
- The FTC has issued compulsory orders to these companies, who have 45 days to respond. The investigation will focus on the specifics of the investments, new product releases, oversight rights, and potential for sales growth, among other details.
- Microsoft invested over $13 billion into OpenAI, using its technology to enhance its own products, while Amazon and Alphabet invested $4 billion and $2 billion respectively into Anthropic, an AI startup that has developed a chatbot called Claude.
- The UK's Competition and Markets Authority is also investigating the relationship between Big Tech and AI startups, specifically looking into whether Microsoft's investment into OpenAI breaches antitrust law.