FTC launches inquiry into Big Tech's alliances with AI startups

US antitrust regulators are investigating the connections between AI firms like OpenAI and major internet companies that have invested billions in them.

U.S. antitrust regulators have begun investigating the connections between well-known AI firms, such as OpenAI, the company that makes ChatGPT, and the major internet companies that have made billion-dollar investments in them. 

Amazon, Google, and Microsoft are the focus of the action because of their influence over the generative AI boom, which has increased demand for chatbots like ChatGPT and other AI tools that can generate unique music and graphics.

The FTC announced on Thursday that it had sent "compulsory orders" to five businesses, including artificial intelligence (AI) startups Anthropic and OpenAI and cloud providers Amazon, Google, and Microsoft, requesting them to submit information regarding their agreements and the decision-making process around them.

Microsoft's long-standing partnership with OpenAI is well-known, while Google and Amazon have signed multibillion-dollar agreements with Anthropic, an AI business founded by former OpenAI executives.

In a statement released on Thursday, Google expressed its gratitude for the FTC's investigation and made a pointed jab at Microsoft's OpenAI partnership and its track record of drawing antitrust scrutiny for its business practices.

Corporate vice president for competition and market regulation at Microsoft, Rimy Alaily, added that the company is eager to work with the FTC and defended such collaborations as fostering competition and spurring innovation.