FTC to investigate deals between tech giants and Generative AI companies

They included Microsoft and Open AI, Amazon, Alphabet, and Anthropic PBC.

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  • Storyboard18,
 | January 26, 2024 , 11:00 am
The recent decision was taken under the provisions of the Information Technology Act, 2000 in consultation with other Ministries and Departments of the Government of India, and domain experts specializing in media and entertainment, women's rights, and child rights. (Representative Image: Emily Morter via Unsplash)
The recent decision was taken under the provisions of the Information Technology Act, 2000 in consultation with other Ministries and Departments of the Government of India, and domain experts specializing in media and entertainment, women's rights, and child rights. (Representative Image: Emily Morter via Unsplash)

On Thursday, the US’s Federal Trade Commission voted on a unanimous level to conduct an investigation into the deals between tech giants and Generative AI companies. They included Microsoft and Open AI, Amazon, Alphabet, and Anthropic PBC.

The regulatory agency sent compulsory orders to the five companies and sought more information on the $10 billion deal between Microsoft and OpenAI (done in 2023).

FTC is also seeking more information on the investments from Amazon and Alphabet into Anthropic, which was worth $4 billion and $2 billion respectively, stated a report.

FTC chair Lina Khan stated that the investigations will look into whether the tech giants are distorting innovation and undermining fair competition in the Generative AI market.

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