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FTC launches inquiry to scrutinize tech giant investments in OpenAI and Anthropic (www.geekwire.com)

TLDR; Summary

  • The Federal Trade Commission (FTC) is launching an inquiry to investigate investments made by Microsoft and Amazon in AI startups OpenAI and Anthropic.
  • The inquiry aims to understand the investments and partnerships formed between generative AI developers and cloud service providers.
  • Microsoft has invested over $10 billion in OpenAI, while Amazon has committed to investing up to $4 billion in Anthropic.
  • Microsoft's Azure is the exclusive cloud provider to OpenAI, and Anthropic has made Amazon Web Services its main cloud provider.
  • The FTC is concerned about the potential distortion of innovation and fair competition due to investments and partnerships pursued by dominant companies.
  • This move by the FTC is part of its efforts to scrutinize Big Tech and its power in the market as the AI race intensifies.