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FTC to probe AI giants over cloud partnerships

Posted on January 25, 2024January 25, 2024

The Federal Trade Commission (FTC) has announced a sweeping investigation into the artificial intelligence (AI) industry, focusing on the ties between major cloud service providers and AI developers. The FTC will use its 6(b) authority to order companies like Amazon, Alphabet, Microsoft, Anthropic and OpenAI to submit reports and answer questions about their investments and collaborations in the AI field.

The regulator wants to understand how these companies are using their power and influence to shape the AI market and affect consumers.

FTC Chair Lina Khan said the inquiry is part of the agency’s broader effort to monitor the rapid development and deployment of AI, and to enforce the laws that protect competition and the public interest.

The FTC has previously launched similar studies into the prescription drug and social media sectors.

“What AI liability regimes will ultimately look like is still an open question,” Khan said on Thursday. “Our enforcement experience in other domains will directly inform how the FTC approaches this work.”

Reference

CMA probes Microsoft-OpenAI deal amid AI competition concerns

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