FTC launches inquiry into AI investments by big tech companies

The Federal Trade Commission ordered five companies to provide information about their investments involving generative artificial intelligence companies and cloud service providers. The five companies are Google parent company Alphabet, Amazon, Anthropic PBC, Microsoft and OpenAI. “History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize […]

The Federal Trade Commission ordered five companies to provide information about their investments involving generative artificial intelligence companies and cloud service providers.

The five companies are Google parent company Alphabet, Amazon, Anthropic PBC, Microsoft and OpenAI.

“History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity, “FTC Chairwoman Lina M. Khan said in a press release. “Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.”

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According go the press release, the FTC is seeking information specifically related to:

• Information regarding a specific investment or partnership, including agreements and the strategic rationale of an investment/partnership.
• The practical implications of a specific partnership or investment, including decisions around new product releases, governance or oversight rights, and the topic of regular meetings.
• Analysis of the transactions’ competitive impact, including information related to market share, competition, competitors, markets, potential for sales growth, or expansion into product or geographic markets.
• Competition for AI inputs and resources, including the competitive dynamics regarding key products and services needed for generative AI.  
• Information provided to any other government entity, including foreign government entities, in connection with any investigation, request for information, or other inquiry related to these topics.

The companies will have 45 days from the date they receive the order to respond.