U.S. antitrust enforcers have launched an investigation into the relationships between leading artificial intelligence (AI) startups and tech giants Amazon, Google, and Microsoft. The inquiry is focused on the influence these companies have over the generative AI boom, particularly in relation to chatbots like ChatGPT and other AI tools that produce novel imagery and sound. Lina Khan, chair of the U.S. Federal Trade Commission (FTC), expressed concerns about whether these ties enable dominant firms to exert undue influence or gain privileged access, potentially undermining fair competition.

In order to gather information about these agreements, the FTC has issued "compulsory orders" to five companies: Amazon, Google, Microsoft, and AI startups Anthropic and OpenAI. Microsoft's long-standing relationship with OpenAI is well-known, while Google and Amazon have recently made multibillion-dollar deals with Anthropic, another San Francisco-based AI startup formed by former leaders at OpenAI. Google responded to the inquiry by welcoming the FTC's investigation and taking a subtle jab at Microsoft's OpenAI relationship, highlighting the openness of Google Cloud compared to other companies.

Microsoft's Rimy Alaily, a corporate vice president for competition and market regulation, defended these partnerships as promoting competition and accelerating innovation. However, Amazon, Anthropic, and OpenAI declined to comment on the investigation. It is worth noting that the European Union and the United Kingdom have also expressed interest in scrutinizing Microsoft's OpenAI investments, with concerns that the partnership could harm competition.

Antitrust advocates have praised the actions taken by both the FTC and Europe, as they view these deals as quasi-mergers. Matt Stoller, director of research at the American Economic Liberties Project, stated that big tech firms are finding ways to exert influence without formal acquisitions. The total amount of Microsoft's investment in OpenAI has not been publicly disclosed, but Microsoft CEO Satya Nadella described it as a "complicated thing" that goes beyond monetary investment.

The governance of OpenAI and its relationship with Microsoft came under scrutiny last year when the startup's board of directors fired CEO Sam Altman, only to reinstate him shortly after. Microsoft played a crucial role in stabilizing the startup and led to the resignation of most of its previous board. Although Microsoft now has a nonvoting board seat, Nadella emphasized that they do not have control over OpenAI.

OpenAI initially started as a nonprofit research institute focused on the safe development of AI. However, most of its staff now works for the for-profit arm that was formed later. In 2019, Microsoft made its first $1 billion investment in OpenAI, which included exclusive rights to much of the technology developed by the startup. This allowed Microsoft to incorporate AI advancements into its products.

The FTC has been signaling for almost a year that it is committed to tracking and stopping illegal behavior in the use and development of AI tools. The use of AI-generated voices and imagery for fraudulent activities, such as phone scams, is a particular concern. Lina Khan stated in April that the U.S. government would not hesitate to crack down on harmful business practices involving AI.