US agencies to investigate OpenAI, Microsoft, Nvidia over AI competition fairness

Two US agencies are arranging to investigate companies involved in AI over anticompetition issues, Politico reported on June 6.

Under the agreement, the Department of Justice (DOJ) will investigate Nvidia and its role in supplying high-end semiconductors to the AI industry.

Estimates suggest the firm controls up to 90% of the high-end AI chip market.

Meanwhile, the Federal Trade Commission (FTC) will examine whether Microsoft and OpenAI have an unfair advantage in AI and large language models (LLM) technology.

The FTC and DOJ will keep their respective authorities over Amazon and Google. The two firms reportedly face pending AI-related investigations separate from existing antitrust cases.

Another investigation is reportedly pending. According to a June 6 report by the Wall Street Journal, the FTC is probing a deal between Microsoft and Inflection AI to determine if it was structured to dodge a government antitrust review.

Roles limited investigations

The DOJ and FTC have not confirmed or denied the existence of any investigation.

Politico said the lack of an agreement has limited each agency’s ability to investigate.

In July 2023, the FTC opened a case concerning OpenAI’s possible violations of consumer protection laws, alleging several issues related to its AI models.

In January, the FTC ordered Google, Anthropic, Amazon, Microsoft, and OpenAI to provide information. The agency sought details about the companies’ investments and partnerships and competition for AI inputs and resources. The FTC said it could use the information in future actions.

In March, the UK’s Competition and Markets Authority (CMA) announced a probe of some of the same companies, including Microsoft, Amazon, and Inflection.

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