A recent staff report by the Federal Trade Commission (FTC) suggests possible antitrust conflicts emerging from alliances between leading tech firms and generative AI developers. This concern specifically extends to Microsoft’s connection with OpenAI and also Amazon and Alphabet/Google’s associations with Anthropic.
“The FTC’s report lays bare how partnerships established by giants of the tech world can enforce lock-in, strangle start-ups of crucial AI resources, and expose sensitive details that can sabotage fair competition,” stated FTC Chair Lina Khan. Khan, however, is slated to be replaced by President-elect Donald Trump.
The report underscores the roles of Microsoft, Amazon, and Google as cloud service providers in association with OpenAI and Anthropic. It raises the suspicion that these partnerships could manipulate access to computing assets and engineering talents, boost switching costs for companies collaborating with AI developers, and potentially provide cloud providers exclusive access to sensitive information.
Responding to these concerns, Microsoft’s deputy general counsel, Rima Alaily, assured Bloomberg that Microsoft’s association with OpenAI has “enabled one of the most successful AI startups globally, leading to a surge of unprecedented technological investment and innovation in the industry.”
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