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US opens antitrust probe on investments by Microsoft in OpenAI, Alphabet and Amazon in Anthropic

  • The Federal Trade Commission is seeking details on how the partnerships between start-ups and Big Tech influence strategy and pricing decisions
  • Microsoft says collaboration by American firms puts the US ahead in AI, while Google says the probe may shed light on those that lock in customers

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The US FTC has opened an inquiry into partnerships between AI start-ups and Big Tech companies. Photo: AFP
The US Federal Trade Commission (FTC) said on Thursday it had ordered OpenAI, Microsoft, Alphabet, Amazon and Anthropic to provide information on recent investments and partnerships involving generative artificial intelligence (AI) companies and cloud service providers.

Generative AI, which like ChatGPT uses data to create new content, has drawn attention from lawmakers and regulators globally, concerned it could be used to threaten national security, amplify influence operations or facilitate fraud.

Deals among the small number of powerful players and Big Tech have raised antitrust concerns.

The FTC orders will allow the agency to scrutinise the inner workings of deals between Microsoft, Google and Amazon and AI providers to help the antitrust and consumer protection agency understand how these deals have affected competition.

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It also signals to the industry that “we’re watching, we’re learning and we will continue to observe” and that if the time comes for future action, the agency will be fully prepared, said former FTC chair William Kovacic, who teaches at George Washington University law school.

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