Federal regulators have reached an agreement that will allow antitrust investigations into the dominant role of Microsoft, OpenAI and Nvidia in the artificial intelligence industry.
This development is the strongest sign yet of increased regulatory scrutiny of this powerful technology. The New York Times report.
The Department of Justice and the Federal Trade Commission (FTC) finalized the deal last week, and it is expected to close in the coming days.
The Justice Department will lead the investigation into Nvidia, a leading maker of AI chips, according to two sources familiar with the matter who asked not to be identified due to the confidentiality of the discussions. At the same time, the FTC will focus on OpenAI and Microsoft, the report said. Microsoft has invested $13 billion in OpenAI and has contracts with other AI companies.
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The agreement marks increased Department of Justice and FTC oversight of AI, a rapidly evolving technology with the potential to have a major impact on jobs, information and people's lives. Both agencies have been active in the Biden administration's efforts to rein in the power of big tech companies. In a similar agreement in 2019, the government investigated Google, Apple, Amazon and Meta and then sued each for alleged antitrust violations. The New York Times Report added.
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For months, Nvidia, Microsoft and OpenAI have largely avoided the Biden administration's regulatory focus, but that's starting to change as generative AI — capable of generating human-like text, photos, video and audio — gains attention in the second half of 2022 and sparks industry frenzy, according to reports.
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Regulators have recently signaled their desire to get ahead of AI developments. In July, the FTC launched an investigation into whether OpenAI harmed consumers through its data collection. In January, the FTC launched a broad investigation into strategic alliances between tech giants and AI startups, including Microsoft's investment in OpenAI and Google and Amazon's investment in another AI company, Anthropic, according to the report.
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Despite these efforts, the U.S. lags behind Europe on regulating AI. Last year, European Union officials agreed to landmark rules to regulate the rapidly evolving technology, focusing on the riskiest uses. Last month in Washington, a group of senators released legislative recommendations on AI, arguing for $32 billion a year in spending to bolster U.S. leadership in the technology, but refrained from calling for specific new regulations. The New York Times report.
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The final round of talks between the FTC and the Department of Justice over AI companies took place last week and included senior officials from both agencies, the report added, adding that one source within the FTC staff noted the importance of those talks.
In an interview in February, FTC Chairman Lina Khan stressed that when it comes to AI, the agency aims to “identify potential problems at the start, rather than years later when the issues are deeply ingrained and much harder to fix.”
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