Microsoft’s OpenAI investment draws scrutiny by FTC

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Microsoft faces a potential investigation by the US Federal Trade Commission (FTC) regarding its significant investment in OpenAI. The FTC’s inquiry centers around antitrust concerns, given OpenAI’s non-profit roots and Microsoft’s substantial funding, which exceeds $10 billion.

This funding is vital for powering AI model training and integrating ChatGPT into Microsoft’s product portfolio. Microsoft’s Chief Communications Officer, Frank X Shaw, emphasizes that Microsoft does not own OpenAI but is entitled to profit shares.

The FTC’s scrutiny aligns with its ongoing investigation into OpenAI’s ChatGPT for privacy and reputational issues, and its past scrutiny of Microsoft’s business practices, notably the $69 billion Activision Blizzard deal. The UK’s Competition and Markets Authority is also conducting a consultation on Microsoft’s relationship with OpenAI, examining potential competition impacts.

Sources include: The Register


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