Breaking Up Big Tech: Regulators’ Urgent Move Against AI Giants!

Federal authorities in the US start to regulate the likes of NVidia, Microsoft and OpenAI amidst their steadily increasing progress in the AI world.

Urgent Scrutiny on Big Tech’s AI Dealmaking

The top US antitrust enforcer, Jonathan Kanter, has expressed urgent concerns about the concentration of power within the AI sector, noting potential “monopoly choke points.” Kanter highlighted the need to examine the competitive landscape, particularly focusing on computing power, data, cloud services, engineering talent, and critical hardware like GPUs. The Department of Justice (DoJ) and Federal Trade Commission (FTC) will split oversight responsibilities, with the DoJ investigating Nvidia and the FTC assessing Microsoft and OpenAI’s actions (Financial Times).

Regulatory Actions and Concerns

The collaboration between the DoJ and FTC aims to prevent dominant tech companies from controlling the AI market. Kanter emphasised the importance of real-time interventions to ensure a competitive landscape. Nvidia’s dominance in GPU sales, bolstered by the surge in demand for AI training, has drawn particular attention. The DoJ is also scrutinising how chipmakers allocate advanced products amid high demand, considering potential conflicts of interest.

Probes into Tech Giants’ AI Investments

The rise of AI tools like ChatGPT has spurred a rush for partnerships and investments in promising AI companies. Notably, Microsoft’s $13bn investment in OpenAI and other deals have attracted regulatory scrutiny. The FTC is investigating whether Microsoft’s hiring of AI start-up Inflection’s staff was an attempt to circumvent antitrust laws. Microsoft maintains that its partnerships have increased market competition and denies exerting undue control over its AI investments.

(Visit Financial Times for the full story)

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