FTC Probes Big Tech's AI Startups Stakes Including Microsoft and Amazon

The Federal Trade Commission (FTC) has launched an inquiry into the relationships between large tech firms such as Alphabet (Google), Microsoft, Amazon, and AI startups like OpenAI and Anthropic. The investigation seeks to uncover how investments and partnerships in the burgeoning field of generative AI affect market competition and dynamics. As part of the investigation, the FTC has issued orders under Section 6(b) of the FTC Act, compelling the involved companies to provide detailed information regarding their investment agreements, product development influence, market share, and sales growth within 45 days.

This scrutiny follows heightened antitrust concerns, particularly spotlighted by Microsoft's substantial investment into OpenAI. FTC Chair Lina Khan has made clear that while innovation is encouraged, it should not serve as a shield for anti-competitive practices. The study is separate from the FTC's enforcement actions and is part of the agency's broader interest in emerging technology markets and potential monopolistic behavior. The FTC's investigation is being carried out with the intention of better understanding the impact of these corporate partnerships on the competitive landscape, and it may lead to further action depending on the findings. As of now, the companies involved have not publicly responded to the FTC's subpoenas.