FTC to probe tech giants' investments in AI startups for competition violations

The US Federal Trade Commission (FTC) has initiated an investigation into major technology companies that have invested billions of dollars in promising artificial intelligence startups.

Here's What We Know

In particular, the regulator will analyse Microsoft, Google and Amazon's deals with OpenAI and Anthropic for their impact on competition and innovation in the market for cloud computing and AI services.

FTC chief Lina Khan said partnerships between tech giants and startups could lead to monopolisation of the industry and limit independent developers' access to cutting-edge technology.

"Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition", she stated.

The FTC is asking the named companies to provide copies of financial agreements, strategic rationales, market studies and communications about their AI partnerships.

Source: The Register