U.S. Justice Department and FTC Team Up for Antitrust Probe into Microsoft, OpenAI, and Nvidia Dominance in AI Industry

In a significant move aimed at scrutinizing the dominant roles of tech giants in the artificial intelligence (AI) sector, the U.S. Justice Department and the Federal Trade Commission (FTC) have struck a deal to commence antitrust investigations into Microsoft, OpenAI, and Nvidia, according to a source with knowledge of the matter.

Under the terms of the agreement, the Justice Department will spearhead the investigation into whether Nvidia has violated antitrust laws, while the FTC will focus on examining the conduct of OpenAI and Microsoft.

This collaborative effort comes as concerns escalate over the concentration of power and potential anti-competitive practices within the AI industry. Despite OpenAI’s nonprofit status, Microsoft’s significant investment of $13 billion in a for-profit subsidiary, giving it a substantial 49% stake, has raised eyebrows among regulators.

The deal between the two regulatory bodies was reportedly finalized in the past week and is anticipated to be formally concluded in the coming days.

This latest development echoes a similar arrangement struck between the Justice Department and the FTC in 2019, where enforcement responsibilities regarding Big Tech were divided. Subsequently, the FTC initiated cases against Meta and Amazon, while the Justice Department sued Apple and Google for alleged violations of antitrust laws. These cases remain ongoing, with the accused companies vehemently denying any wrongdoing.

As the investigation into Microsoft, OpenAI, and Nvidia gains momentum, stakeholders across the tech industry are closely monitoring the proceedings, anticipating potential ramifications for the future landscape of AI innovation and competition.