Federal regulators in the United States have agreed to split the responsibility for investigating potential antitrust violations among three major players in the artificial intelligence industry: Nvidia, Microsoft, and OpenAI. The Justice Department will lead the investigation into Nvidia’s market dominance, while the FTC will focus on Microsoft and OpenAI’s business practices and partnerships.
Federal regulators in the United States have reached an agreement to divide responsibility for investigating potential antitrust violations by three major players in the artificial intelligence industry: Nvidia, Microsoft, and OpenAI. The decision came about through discussions between the Justice Department and the Federal Trade Commission (FTC) and will be finalized in the coming days.
The Justice Department will lead the investigation into Nvidia, which is the primary maker of AI chips and has recently seen its market value surpass $3 trillion. Concerns have been raised about Nvidia’s dominance in the market and how its software may lock customers into using its chips. The FTC will handle the investigations into Microsoft and OpenAI, focusing on their business practices and partnerships. Microsoft has invested $13 billion in OpenAI and has integrated its AI technology into various products.
These companies have come under increased scrutiny following the significant advancements in generative AI technology, such as the release of OpenAI’s ChatGPT in late 2022. Regulatory bodies aim to ensure that existing dominant firms do not control the emerging AI markets, which could stifle competition and innovation. The FTC recently began an investigation into possible harms to consumers by OpenAI and the strategic partnerships between big tech firms and AI startups.
The antitrust move highlights the intensifying regulatory focus on the AI industry in the U.S., contrasting with Europe’s more advanced regulatory framework. The agreement between the Justice Department and the FTC illustrates the critical efforts to monitor and regulate the AI sector as it continues to evolve rapidly.
