US regulators are set to launch a competition investigation into Microsoft, Open AI and Nvidia in a crackdown on the tech giants that dominate artificial intelligence (AI).
The United States Department of Justice (DoJ) and the Federal Trade Commission (FTC) are close to reaching an agreement that will allow them to investigate the companies.
The Justice Department will examine whether Nvidia violated competition laws, while the FTC will examine whether Microsoft and its partner Open AI have unfair advantages with the rapidly evolving technology.
The United States Department of Justice (DoJ) and the Federal Trade Commission (FTC) are close to reaching an agreement that will allow them to investigate the companies.
The trio has been at the forefront of AI development, which burst onto the scene in late 2022 following the launch of ChatGPT.
Since then, businesses have raked in millions of pounds to get by.
But concerns have grown that some of the largest companies have too much control over the market, making it difficult for smaller companies to participate. Nvidia is the favorite and its graphics processing unit plays an integral role in AI chips.
Yesterday it became the world’s third $3 trillion (£2.3 trillion) company as its shares continue to soar. Microsoft owns about 49 percent of Open AI, a leading developer of research labs that programs chatbots to produce content with simple prompts.
But it’s not just American regulators who are worried.
The UK’s Competition and Markets Authority (CMA) has found an “interconnected web” of AI partnerships involving the same companies: Google, Apple, Microsoft, Meta, Amazon and Nvidia.
‘When we started this work, we were curious. “Now, with a deeper understanding and having watched events closely, we have real concerns,” said Sarah Cardell, executive director of the CMA.
It’s already reviewing Microsoft’s multibillion-dollar partnership with Open AI.
But analysts say this could spell danger for progress.
“This will prevent the 100 mph AI freight train from accelerating for the rest of the technology,” said Wedbush analyst Dan Ives.
