US regulators are intensifying antitrust scrutiny of artificial intelligence developers

The investigation was first announced on Thursday after U.S. regulators appeared to reach an agreement on how to proceed in examining Microsoft’s $13 billion investment in maker ChatGPT, as well as whether Nvidia violated antitrust laws in developing next-generation AI chips. .

The FTC will lead an investigation into OpenAI and Microsoft, which first invested $1 billion in the AI ​​startup in 2019 and has since taken a 49% stake in the company. According to The New York Times, the Justice Department will oversee a separate investigation into Nvidia, which the industry increasingly relies on for high-performance semiconductors to power AI products.

Neither the FTC nor the Judiciary immediately responded to requests for comment. Nvidia, Microsoft and OpenAI remained silent on the news on Thursday, although all three companies had previously confirmed that their artificial intelligence operations were subject to regulatory scrutiny in other regions, including the European Union.

The news comes after the FTC launched an investigation into leading artificial intelligence startups such as OpenAI, Amazon, Google and Microsoft in January as part of a broader effort to determine whether tech giants are exercising undue influence emerging technology industry. FTC Chair Lina Khan said at the time that the commission would examine “investments and partnerships being created between AI developers and major cloud service providers” (see: The US FTC is launching an investigation into the impact of artificial intelligence of technology giants).

The FTC then sent orders to Microsoft, Google, Amazon, OpenAI and AI startup Anthropic, requesting information about the development of their business relationships.

It is unclear how antitrust investigations could impact the businesses of Nvidia, OpenAI and Microsoft, although these three companies have gained dominant roles in the artificial intelligence landscape. Since Microsoft began investing in OpenAI several years ago, the two partners have launched public-private sector initiatives such as the $2 million Social Resilience Fund to promote AI education and literacy among the vulnerable. society. The two companies have partnered with the White House to push for voluntary commitments on AI and signed the Technology Agreement to Combat the Fraudulent Use of Artificial Intelligence in the 2024 Elections.

Nvidia’s stock value topped $3 trillion on Wednesday as demand for AI chips continues to grow in the United States. According to The Associated Press, Nvidia is becoming one of the most valuable companies in the S&P 500 index.

News of the investigations comes just days after nearly 16 current and former OpenAI employees signed a letter raising concerns about the “serious risks” posed by AI technologies and “strong financial incentives to avoid effective oversight” of the emerging industry.

“Artificial intelligence companies have significant, non-public information about the capabilities and limitations of their systems, the adequacy of the protective measures they use, and the level of risk of various types of harm,” the letter says. It also says “broad confidentiality agreements” prevent employees from expressing their concerns.

The Justice Department will reportedly retain investigative powers over Google and the FTC will retain authority over Amazon as part of the deal. In January, Politico first reported that the FTC and the Department of Justice were working on an investigative agreement. According to the portal, the new agreement may become official this week.