US launches investigation into generative AI partnerships

The US Federal Trade Commission (FTC) has issued orders to five companies requiring them to provide information regarding their recent investments and partnerships in generative AI.

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US launches investigation into generative AI partnerships

In a statement from the FTC, it was noted that the investigation will examine corporate partnerships and investments with AI providers to better understand their impact on the competitive landscape, adding that the findings could assist the Commission in its future actions.

Pointing out that companies are implementing a range of strategies, including forming partnerships and making direct investments with AI developers to gain access to the essential technologies and inputs required for AI development, the statement noted that the information request orders were sent to Alphabet, Amazon, Anthropic, Microsoft, and OpenAI, which are involved in three separate multi-billion dollar investments.

45-DAY DEADLINE GRANTED

The statement expressed that the investigation will help the FTC deepen its understanding of the investments and partnerships forming between generative AI developers and cloud service providers.

The statement also touched upon the information requested by the FTC, announcing that the five companies will be given 45 days from the date they receive the order to respond. FTC Chair Lina Khan, whose views were included in the statement, emphasized that history shows new technologies can create new markets and healthy competition.

Noting that as companies race to develop and monetize AI, they must be protected against tactics that stifle this opportunity, Khan stated, "Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition."

News Source: AA