US Targets AI Giants: Microsoft, OpenAI, NVIDIA Face Antitrust Probe

US government launches antitrust investigation into Microsoft, OpenAI, and NVIDIA over AI market dominance.

The US government is launching an antitrust investigation into Microsoft, OpenAI, and NVIDIA for their dominance in the AI sector.

According to the New York Times, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have agreed to scrutinize these companies.

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The DOJ will lead the investigation into NVIDIA, the world’s largest AI chipmaker, while the FTC will focus on OpenAI and Microsoft’s deep collaboration. Microsoft has invested $13 billion into OpenAI, known for its ChatGPT.

This move signifies the US government’s increasing scrutiny of AI technology, which is rapidly evolving and has the potential to significantly impact employment, information, and lifestyle. The Biden administration is keen on regulating the power of large tech companies, with the DOJ and FTC at the forefront of this effort.

In 2019, a similar agreement between these bodies led to investigations and lawsuits against Google, Apple, Amazon, and Meta for alleged monopolistic practices.

While NVIDIA, Microsoft, and OpenAI had not been major targets of the Biden administration’s regulatory focus, the rise of generative AI since late 2022 has changed the landscape. This technology can create realistic text, images, videos, and audio, drawing significant attention from the industry.

US regulators have recently expressed intentions to pre-emptively regulate AI’s development. In July, the FTC initiated an investigation into whether OpenAI’s data collection practices harmed consumers.

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In January, the FTC also launched a broad investigation into strategic partnerships between tech giants and AI startups, including Microsoft’s investment in OpenAI and similar investments by Google and Amazon in Anthropic.

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european union flag ccDespite these efforts, the US still lags behind Europe in AI regulation. The EU established landmark AI regulations last year, focusing on the riskiest uses of AI.

Last month, a group of US senators proposed legislation to allocate $32 billion annually to bolster America’s leadership in AI technology but stopped short of demanding specific new regulations.

Discussions between the FTC and DOJ regarding AI companies reached their final stages last week, with top leaders from both agencies involved.

FTC Chair Lina Khan stated in a February interview that the agency aims to address AI issues at their inception rather than after they become entrenched and hard to correct.

As of this report, the FTC and DOJ spokespeople have declined to comment. NVIDIA, Microsoft, and OpenAI also did not immediately respond to requests for comments.

NVIDIA, OpenAI, and Microsoft are prominent players in the AI boom, raising concerns about their dominant positions.

NVIDIA, a major supplier of graphics processing units (GPUs) essential for machine learning, has seen its GPU sales soar, with stock prices skyrocketing over 200% in the past year, pushing the company’s market value past $3 trillion, surpassing Apple.

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Rajesh Namase is the owner and founder of TechLila. A serial entrepreneur, internet marketer and a fitness freak, his passion lies in SEO, blogging and affiliate marketing. In his free time, he enjoys spending time with friends, reading books and traveling.

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US Targets AI Giants: Microsoft, OpenAI, NVIDIA Face Antitrust Probe

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