U.S. antitrust enforcers are set to investigate the roles of Microsoft, Nvidia, and OpenAI in the artificial intelligence boom. The Department of Justice will probe chipmaker Nvidia, while the Federal Trade Commission will scrutinize Microsoft and ChatGPT-maker OpenAI. Both agencies are responding to President Joe Biden's call for increased scrutiny of Big Tech.
The investigations come amid concerns about monopolistic behavior in the chatbot and generative AI industry. Lina Khan, chair of the FTC, emphasized the need to prevent dominant firms from gaining undue influence that could harm fair competition. The FTC has been particularly focused on the relationships between AI startups like OpenAI and cloud computing giants such as Amazon, Google, and Microsoft.
Microsoft's close ties with OpenAI have raised eyebrows, with Microsoft providing significant computing resources for training AI systems like ChatGPT. Nvidia's specialized semiconductors have also been crucial for powering AI applications, leading to a surge in demand for its AI chips and a market value exceeding $3 trillion, making it one of the most valuable companies in the S&P 500.
The investigations signal a growing awareness of the need to regulate the rapidly evolving AI industry to ensure fair competition and prevent monopolistic practices. Both Nvidia and OpenAI declined to comment on the pending investigations, while Microsoft has yet to respond to requests for comment.
