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Microsoft, Alphabet, and Amazon Face FTC Scrutiny Over AI Deals

  1. Microsoft, Alphabet, and Amazon have invested billions in leading AI startups, consolidating their influence in the AI sector.

  2. The US Federal Trade Commission (FTC) has issued subpoenas to these tech companies, seeking information on their investments and partnerships with OpenAI and Anthropic.

  3. Microsoft's relationship with OpenAI is particularly noteworthy, involving a $13 billion investment, integration of OpenAI's technology across Microsoft's business, and significant involvement in executive appointments.

  4. Following Microsoft's investment, other tech giants engaged in partnerships with AI startups, with Salesforce leading a round in Hugging Face and Alphabet and Amazon investing in OpenAI rival Anthropic.

  5. These deals with Big Tech serve as crucial support for AI companies, given the high costs and computational intensity of building large language models.

  6. Regulators on both sides of the Atlantic, including the FTC, are scrutinizing these partnerships, with a focus on promoting a fair and competitive AI ecosystem.

  7. FTC Chair Lina Khan emphasized the agency's close monitoring of the industry, warning that claims of innovation should not be used as a cover for unlawful practices during a public workshop.


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