This is how the game is played. Investigations of companies and politicians are used to make them do as they are told. Such as donate to the correct political organizations and have the correct DEI Marxist policies. Or else.
The Federal Trade Commission (FTC) and the Department of Justice (DOJ) are set to launch antitrust investigations into Microsoft, OpenAI, and Nvidia, focusing on these companies’ significant influence within the artificial intelligence (AI) industry. This development was confirmed by a source familiar with the situation.
The US Justice Department and Federal Trade Commission have set the stage for antitrust probes of Nvidia, Microsoft and OpenAI.https://t.co/ec62tL1cHO
— POLITICOEurope (@POLITICOEurope) June 6, 2024
The FTC will lead the investigation into Microsoft and OpenAI, while the DOJ will concentrate on Nvidia. These investigations will scrutinize the companies’ business practices rather than their merger and acquisition activities.
This move comes amidst a rapid expansion in the generative AI market, where startups like OpenAI and Anthropic, creators of the ChatGPT and Claude chatbots respectively, are gaining momentum. Tech giants such as Google, Microsoft, Amazon, and Meta are actively integrating AI technologies to stay competitive in a market expected to surpass $1 trillion in revenue within the next decade.
Microsoft’s involvement with OpenAI began in 2019 with an initial investment of $1 billion, which has since increased to approximately $13 billion. Microsoft’s Azure cloud platform extensively employs OpenAI’s models, including the Copilot chatbot, and offers open-source models. These substantial investments are essential due to the high costs associated with developing and training AI models, which require thousands of specialized chips predominantly supplied by Nvidia.
Nvidia’s significant role in the AI industry is underscored by its partnerships with major tech firms. Meta, for example, has invested billions in Nvidia’s graphics processing units (GPUs) to develop its AI model, Llama. This demand has contributed to Nvidia’s substantial revenue growth, with a year-over-year increase exceeding 250%.
US clears way for antitrust inquiries of #Nvidia, Microsoft and #OpenAI
FTC will play the lead role in examining the conduct of OpenAI, which made #ChatGPT, and #Microsoft, which has invested $13 billion in OpenAI and made deals with other AI firmshttps://t.co/KlQmjGgiFF
— ETtech (@ETtech) June 6, 2024
The announcement of these antitrust investigations follows a recent open letter from current and former OpenAI employees. The letter expressed concerns about the AI industry’s rapid advancement without adequate oversight and the lack of whistleblower protections. The employees highlighted the financial incentives AI companies have to avoid effective regulation and questioned the adequacy of existing corporate governance structures to address these issues. They stressed that AI companies currently have minimal obligations to share crucial information with governments and none with civil society, doubting that these companies can be relied upon to voluntarily disclose such information.
This news also comes on the heels of the FTC’s January decision to conduct a comprehensive study on AI industry leaders, including Amazon, Alphabet, Microsoft, Anthropic, and OpenAI. FTC Chair Lina Khan announced the inquiry during the agency’s tech summit on AI, framing it as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.”
By invoking its authority under Section 6(b) of the FTC Act, the agency can conduct a separate study from its law enforcement division, allowing it to issue civil investigative demands. This enables the FTC to require companies to file detailed reports and answer written questions about their operations.
Khan emphasized the FTC’s commitment to monitoring the AI sector, stating, “At the FTC, the rapid development and deployment of AI is informing our work across the agency. There’s no AI exemption from the laws on the books, and we’re looking closely at the ways companies may be using their power to thwart competition or trick the public.”
The two US antitrust agencies have agreed to divide responsibility over the AI industry, giving the FTC the go-ahead to open a probe into Microsoft’s relationship with OpenAI, sources say https://t.co/DKaJ4pHDr4
— Bloomberg (@business) June 6, 2024
Neither Microsoft nor OpenAI responded immediately to requests for comment, while an Nvidia spokesperson declined to comment.
These investigations signal a significant regulatory focus on ensuring that the burgeoning AI industry operates within competitive and transparent frameworks, reflecting growing concerns about the unchecked power and influence of major tech companies in this critical sector. That, and of course the politics. Do as the DOJ say, or else.
Major Points:
- The FTC and DOJ are launching antitrust investigations into Microsoft, OpenAI, and Nvidia, focusing on the companies’ conduct rather than mergers and acquisitions.
- The FTC will investigate Microsoft and OpenAI, while the DOJ will handle the Nvidia probe.
- The investigations come amidst intense competition in the AI market, with companies like Microsoft, Google, Amazon, and Meta racing to integrate AI technology.
- Microsoft has significantly invested in OpenAI, using its models for services like the Copilot chatbot and offering open-source models on Azure, with Nvidia supplying the specialized chips needed for AI development.
- The investigations follow an open letter from OpenAI employees about insufficient oversight in the AI industry and the FTC’s January announcement of a study into major AI companies’ investments and partnerships.
RM Tomi – Reprinted with permission of Whatfinger News
