US Regulators Launch Antitrust Probe into Tech Giants Microsoft, OpenAI, and Nvidia Over AI Industry Dominance

Microsoft, OpenAI, and Nvidia are facing increased antitrust scrutiny from US regulators over their roles in the AI industry. The Department of Justice (DoJ) and the Federal Trade Commission (FTC) have agreed to investigate these companies, with details expected soon.

The DoJ will investigate Nvidia, the leading AI chipmaker, for potential antitrust violations. Meanwhile, the FTC will examine OpenAI, known for ChatGPT, and its major investor, Microsoft. The FTC is also probing whether Microsoft structured a deal with Inflection AI to evade antitrust scrutiny. In March, Microsoft hired Inflection’s CEO, Mustafa Suleyman, and agreed to pay $650 million to license Inflection’s AI software.

In January, the FTC requested information from several AI companies, including OpenAI, Microsoft, and Google’s parent Alphabet, regarding their AI investments and partnerships. Last year, the FTC began investigating OpenAI for potential consumer protection violations.

Jonathan Kanter, head of the DoJ’s antitrust division, emphasised the need for urgent action to prevent tech monopolies in the AI sector. Nvidia’s valuation recently hit $3 trillion, surpassing Apple.

Vanderbilt law professor Rebecca Haw Allensworth noted that the DoJ and FTC’s collaboration reflects a more cooperative approach under the Biden administration, given the significance of AI for antitrust enforcement.

Microsoft expressed confidence in its compliance with antitrust laws regarding the Inflection AI deal, while the FTC, DoJ, Nvidia, and OpenAI have so far declined to comment on media queries.


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