The Department of Justice (DOJ) and federal regulators are launching antitrust investigations into Microsoft, Nvidia and OpenAI for their roles in the rapidly growing artificial intelligence industry, multiple media outlets reported Thursday.
Department of Justice and Federal Trade Commission (FTC) investigations; The New York Times first reported the news on Wednesday.As the investigation begins, subpoenas have already been sent to some companies.
The DOJ is leading the investigation into Nvidia, while the FTC is investigating OpenAI and Microsoft. Microsoft is the largest investor in OpenAI and has other significant work in the industry. The move marks the most significant regulatory action in the artificial intelligence industry amid growing calls for regulation.
Microsoft’s investigation will focus on how the company structured a recent deal with a startup called Inflection AI, which included hiring many of the company’s founders and staff and licensing its technology. The Wall Street Journal reported.Regulators believe the deal may have been structured to get around takeover rules.
A Microsoft spokesperson told The Hill that the company believes it complies with all regulations.
“Our agreement with Inflection provides us with the opportunity to hire talent and build a team at Inflection AI that can accelerate Microsoft Copilot, while allowing Inflection to continue to pursue its independent business and ambitions as an AI studio,” the spokesperson said. “We take our legal transaction reporting obligations under the HSR Act seriously and are confident that we are in compliance with those obligations.”
The Biden administration also Called for stricter regulations AI industry leaders are wary that top tech companies could monopolize the rapidly developing technology.
The FTC launched a similar investigation in January into investments by Microsoft, Amazon, and Google in OpenAI and AI startup Anthropic.
FTC Chairman Lina Khan said at the time that the agency would scrutinize deals that “allow a dominant company to exercise improper influence or gain privileged access in a way that undermines fair competition.”
The investigation into Nvidia will focus on the company’s chip manufacturing and distribution contracts. The company’s shares are among the fastest-growing on the market, having more than quadrupled in the last year.
The Hill reached out to Inflection AI.
The FTC and DOJ declined to comment.
Julia Shapero contributed.
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