Microsoft-OpenAI Partnership Raises Antitrust Concerns, FTC Says

Microsoft's $13 billion investment in OpenAI raises concerns that the tech giant could extend its dominance in cloud computing into the nascent AI market, the Federal Trade Commission said in a report released Friday. From a report: The commission said Microsoft's deal with OpenAI, as well as Amazon and Google's partnerships with AI company Anthropic, raise the risk that AI developers could be 'fully acquired' by the tech giants in the future.

'The FTC's report sheds light on how partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that can undermine fair competition,' FTC Chair Lina Khan said in a statement. The FTC has the power to open market studies to glean more information about industry trends. The findings can be used to inform future actions. It's unclear what the agency's new leadership under the Trump administration will do with the report.

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