DOJ and FTC set to open antitrust investigation into Microsoft, Nvidia and OpenAI: Reports

The Department of Justice (DOJ) and federal regulators will open an antitrust investigation into Microsoft, Nvidia and OpenAI over their role in the fast-growing artificial intelligence (AI) industry, multiple media outlets reported Thursday.

DOJ and Federal Trade Commission (FTC) investigations first reported Wednesday by The New York Timeshave already sent subpoenas to some of the companies as investigations progress.

The DOJ will conduct an investigation into Nvidia, while the FTC will investigate OpenAI and Microsoft. Microsoft is OpenAI’s largest investor and has made other significant efforts in the industry. The measures are the most significant regulatory action in the artificial intelligence industry, as calls for regulation grow louder.

Microsoft’s investigation will focus on how the company structured a recent deal with startup Inflection AI, which included hiring its founder, much of its team and licensing its technology, The Wall Street Journal reported. Regulators believe the deal may have been structured to avoid rules on acquisitions.

A Microsoft spokesperson told The Hill that the company is confident it has complied with all regulations.

“Our agreements with Inflection have given us the opportunity to recruit individuals into Inflection AI and build a team capable of accelerating Microsoft Copilot, while enabling Inflection to continue pursuing its independent business and ambition as an AI studio,” said the spokesperson. “We take our legal obligations to report transactions under the HSR Act seriously and are confident that we have met those obligations.”

The Biden administration also pushed for greater regulation of the AI ​​industry, fearful that major technology companies could quickly gain dominance over the developing technology.

The FTC previously launched a similar investigation into Microsoft, Amazon and Google’s investments in OpenAI and AI startup Anthropic in January.

FTC Chair Lina Khan said at the time that the agency would scrutinize agreements that “would allow dominant companies to exert undue influence or gain privileged access in ways that could undermine fair competition.”

Nvidia’s investigation will focus on chip manufacturing and distribution agreements. The company’s shares are one of the fastest growing on the market and its price has more than quadrupled in the last year.

The Hill has reached out to Inflection AI for comment.

The FTC and DOJ declined to comment.

Julia Shapero contributed.

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