On January 26, the US Federal Trade Commission (FTC) announced that it is monitoring investments by major technology corporations such as Microsoft, Google and Amazon in artificial intelligence (AI) startups OpenAI and Anthropic.
Prevent dirty competition
This is part of the US regulatory agency’s efforts to ensure that regulations keep pace with the development of AI, preventing large technology corporations from engaging in unfair competition and suppressing rivals in a field that promises to change a lot in the future. Specifically, the FTC will conduct research to gain a deeper insight into market trends and business practices, and then base its conclusions on legal action.
The head of the committee, Lina Khan, said the study would shed further light on the nature of investments and collaborations, as well as the risk of unfair competition in the field of generative AI.
Meanwhile, Microsoft Vice President Rima Alaily said she would provide all the information requested by the FTC, while emphasizing that cooperation between independent companies like Microsoft and OpenAI is a driving force for competition and innovation.
For its part, Google hopes the FTC will find companies that take an unfriendly approach to AI.
Anthropic and Amazon declined to comment on the FTC’s decision. Amazon, Microsoft, and Google are the world’s largest providers of cloud computing data centers, which store and process large-scale data. These three “giants” have recently stepped up their investments in generative AI technology, including Microsoft’s $13 billion investment in OpenAI, the company that created the ChatGPT chatbot.
Last year, Amazon and Google also invested $4 billion and $2 billion respectively in Anthropic - a company considered a rival to OpenAI and with great potential for future growth.
Prevent secret takeover
Earlier this month, the European Commission (EC) also conducted a preliminary review of Microsoft’s investment in OpenAI to rule out the possibility of it secretly acquiring and merging with smaller companies. The examination of Microsoft’s investment in OpenAI is largely a competition policy approach, to determine whether Microsoft’s massive bet is so large that it actually amounts to an acquisition and gives the multinational company control of the startup.
As the main enforcer of competition rules, the EC has the power to monitor, approve and, if necessary, eliminate business concentrations that could harm economic relations across the market. If Microsoft's investment falls under the European Union's (EU) Merger Regulation, the tech giant would have to formally notify the regulator. The probe would apply retroactively, as the investment is already in progress, and could result in remedies.
The EU’s move reflects concerns about unfair competition and potential market distortions arising from Microsoft’s extensive integration of OpenAI products into its core businesses. The EU’s review follows a UK investigation into whether the balance of power between Microsoft and OpenAI has shifted, potentially giving one party more control or influence over the other.
VIET ANH
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