FTC launches investigation into AI investments by major tech companies

The Federal Trade Commission has ordered five companies to provide information about their investments in generative artificial intelligence companies and cloud service providers. The five companies are Google’s parent company Alphabet, Amazon, Anthropic PBC, Microsoft, and OpenAI. “History shows that new technologies can create new markets and healthy competition. As companies compete to develop and monetize […]

The Federal Trade Commission has ordered five companies to provide information about their investments in generative artificial intelligence companies and cloud service providers.

The five companies are Google’s parent company Alphabet, Amazon, Anthropic PBC, Microsoft, and OpenAI.

“History shows us that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must be wary of tactics that steal this opportunity. No,” FTC Chair Lina M. Khan said in a press release. “Our research will reveal whether the investments and partnerships pursued by leading companies risk distorting innovation and undermining fair competition.”

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According to the press release, the FTC is specifically seeking information related to:

• Information about specific investments or partnerships, such as investment/partnership agreements and strategic rationale.
• the practical implications of a particular partnership or investment, such as new product releases, governance or oversight decisions, or periodic meeting agendas;
• Analysis of the competitive impact of the transaction, including information regarding market share, competition, competitors, markets, sales growth potential, or expansion into product or geographic markets.
• Competition for AI inputs and resources, including competitive dynamics for key products and services needed for generative AI.
• Information provided to other government agencies, including foreign government agencies, in connection with investigations, information requests, or other inquiries related to these topics.

Businesses must respond within 45 days of receiving the order.