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TechnologyUS Antitrust Watchdogs to Potentially Investigate Microsoft, OpenAI and Nvidia over AI...

US Antitrust Watchdogs to Potentially Investigate Microsoft, OpenAI and Nvidia over AI Market Dominance

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The U.S. antitrust authorities have laid the groundwork for potential investigations into some of the biggest players in the artificial intelligence industry over concerns about their outsized influence. The Department of Justice and Federal Trade Commission have reportedly divided oversight of Microsoft, OpenAI and Nvidia – the three companies that currently hold massive sway in the AI sector.

According to sources, the DOJ will take the lead in examining Nvidia's near monopoly in the AI chip market. With an estimated 80% market share, the chipmaker has few real competitors and enjoys huge profit margins as a result. Meanwhile, the FTC will focus its scrutiny on the activities of OpenAI and Microsoft. OpenAI is a nonprofit lab but has formed close ties with Microsoft through a $1 billion partnership. Questions have been raised about whether such arrangements potentially allow companies to circumvent merger reviews.

The agreement between the antitrust agencies mirrors a similar one from 2019 that saw the DOJ and FTC divvy up oversight of Big Tech giants like Amazon, Apple, Google and Meta. Those ongoing cases allege potential anticompetitive behavior around issues like acquisitions and leveraging market power. With AI now central to tech, similar concerns have emerged in this burgeoning field regarding access to data, generative modeling impacts, and venture investments skirting regulatory procedures.

This division of labor signifies regulators want sharper eyes on the central actors in AI. All hold sway not just through but massive financial resources that can reinforce their positions. Only time will tell if formal antitrust probes materialize or if this initial scrutiny spurs voluntary reforms to promote greater competition in the foundations of this crucial emerging sector. For now, the message is clear – antitrust authorities are laying the groundwork to closely monitor concentration in the industries building our future with artificial intelligence.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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