Federal regulators will proceed with antitrust investigations focusing on Microsoft, OpenAI and Nvidia, according to a source familiar with the situation.
The Federal Trade Commission and the Justice Department are set to open antitrust investigations into Microsoft, OpenAI and Nvidia, examining the powerful companies' influence on the artificial intelligence industry, a source familiar confirmed to CNBC.
Microsoft, for instance, first invested $1 billion into OpenAI in 2019. The size of its investment has since swelled to about $13 billion. Microsoft heavily uses OpenAI's model for its Copilot chatbot and offers open source models on its Azure cloud.are necessary because AI models are notoriously expensive to build and train, requiring thousands of specialized chips that, to date, have largely come from Nvidia.
FTC Chair Lina Khan announced the inquiry in January during the agency's tech summit on AI, describing it as a"market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers."
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