Microsoft, OpenAI, and Nvidia Facing Antimonopoly Probes

( – A deal between the United States Department of Justice and the Federal Trade Commission has been decided for how they will pursue antitrust investigations into Microsoft, OpenAI, and Nvidia.

These are the top three companies when it comes to generative artificial intelligence with OpenAI being the nonprofit startup behind ChatGPT. Microsoft is the largest company and has invested billions into OpenAI while owning forty-nine percent of the company. Nvidia is the global leader in AI chipmaking and is now the world’s second-largest company.

United States authorities want to investigate the companies to determine if they have been using anticompetitive means to dominate the artificial intelligence industry. Microsoft and OpenAI will be investigated by the FTC while the DOJ investigates Nvidia.

U.S. regulators are concerned about the dominance of some companies in certain industries and how this could affect smaller competitors. The U.S. government has just recently looked into Google’s monopoly over search engines and they also looked into Meta as they dominate the social media space.

Dirk Auer, director of competition policy at the International Center for Law & Economics in Portland, Oregon, said that these cases are a result of a policy change that happened over the last few years which pushed for more regulation.

“Enforcers both in the United States and in the European Union are very keen to bring cases in the generative AI space,” Auer said. “The way they see it, this is the next big thing, and they think, rightly or wrongly, that they failed to bring competition cases in the early years of Web 2.0 and that led to more concentration in less competitive markets than would otherwise have been the case.”

Both the FTC and DOJ are responsible for enforcing the federal antitrust laws and they will be collaborating together on the investigations. The DOJ typically looks into criminal enforcement while the FTC is focused on more civil enforcement, but they can overlap their work and essentially work together to achieve the same goals.

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