Government probes into Microsoft's AI partnership deal.
Investigators are getting closer to reaching a decision on how to manage antitrust oversight for AI industry heavyweights like Microsoft, Google, Nvidia, and OpenAI, according to two individuals with knowledge of the situation. This decision is expected to be made this week.
The plan, which is still in the works, would give the Department of Justice responsibility for overseeing Nvidia, while the Federal Trade Commission (FTC) focuses on Microsoft and OpenAI. All investigations would consider whether these companies have utilised their significant market positions to hinder competition.
Regarding Microsoft, the FTC is specifically examining whether its investment in Inflection should be considered a purchase that wasn't disclosed to the government. Earlier in March, Microsoft unveiled that they had recruited Inflection's co-founders and several of its employees to lead its Copilot program. Inflection, in turn, announced it would host its AI model on Microsoft's cloud system. It is said that Microsoft paid $650 million to Inflection as part of this arrangement.
This story is still developing and will be updated with more information as it becomes available.
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The FTC's investigation into Microsoft's tech businesses includes scrutiny of its undisclosed acquisition of Inflection, as reported by its recruitment of Inflection's co-founders and employees for its Copilot program. This move in the tech industry could potentially impact Microsoft's business strategies and market position.
In light of the ongoing antitrust probes, tech companies must be cautious about their business practices to avoid accusations of monopolistic behavior and hindering competition in the market.
