(San Francisco) The American competition authority (FTC) announced Thursday that it had launched an investigation into “investments and partnerships in generative artificial intelligence (AI), targeting leading companies in the sector, starting with OpenAI and its main investor Microsoft, as well as Google, Amazon and Anthropic.
The rise of generative AI over the past year thanks to the success of ChatGPT (OpenAI) has led to a frantic race to develop and deploy computer programs capable of producing texts, sounds and images upon simple request in everyday language.
“History shows that new technologies can create new markets and healthy competition,” said Lina Khan, president of the FTC, quoted in a press release.
We must guard against tactics that foreclose this opportunity.
Lina Khan, Chairman of the FTC
The investigation will focus on three partnerships each worth several billion dollars: Microsoft’s investments in the young Californian startup OpenAI, those of Amazon in Anthropic, a direct competitor of OpenAI, and those of Google, also in Anthropic.
It should make it possible to update information on the groups’ strategy, the consequences for the release of new products, the impact on market shares and on access to the resources necessary for these computer systems requiring sophisticated electronic chips.
The companies concerned did not immediately respond to requests from AFP, or refused to make comments.
“AI poses concentration problems [et de domination des entreprises] on a whole new scale,” reacted on X Zephyr Teachout, professor of law at Fordham University. “We are very pleased to see that the FTC is seriously investigating now, before the power relations around AI become cemented. »
FTC vs. Silicon Valley
Google has long been considered the leader in artificial intelligence, but the emergence of OpenAI has shaken up the internet giant.
Encouraged by the instant success of ChatGPT at the end of 2022, Microsoft has doubled down, injecting new funds into its ally. OpenAI has received around $13 billion from the Windows developer over the past few years.
At the end of September, Amazon announced an investment of up to $4 billion in Anthropic.
This young company from Silicon Valley, which has built its reputation on a less reckless approach than that of OpenAI, also benefits from substantial funds from Google.
All these groups have added automated content production tools to their equipment and software (Internet search, voice assistant, online commerce, productivity, etc.).
“Our study will help determine whether investments and partnerships pursued by dominant companies risk distorting innovation and harming fair competition,” summarizes Lina Khan.
The lawyer has won few victories since her arrival at the head of the federal agency. Last summer, the FTC had to suspend its procedure to block the acquisition of video game developer Activision Blizzard by Microsoft.
However, it continues to try to fight against the immense power acquired by the big players in technology.
In September, the FTC and 17 US states filed a complaint against Amazon, accused of “illegally maintaining its monopoly” through “anti-competitive and unfair strategies”.
“Museum of Horrors”
For many industry experts like Wedbush analyst Dan Ives, generative AI constitutes the “biggest technological revolution of the last 30 years.”
But it also raises many concerns about the risks of misuse, from fraud to disinformation to the theft of intellectual property.
The European Union agreed in December on unprecedented legislation to regulate AI, seeking to encourage innovation while limiting possible abuses.
US President Joe Biden signed a decree in October requiring the companies concerned to transmit the results of their security tests (national, economic, etc.) to the federal government, and the White House unveiled rules and principles supposed to govern the development of this technology.
In terms of competition law, other regulators have already sounded the alarm.
The European Commission thus indicated this month that it was verifying “whether Microsoft’s investment in OpenAI” could “be subject to examination under the European Union Merger Regulation”.
“Artificial intelligence has the potential to become the museum of antitrust horrors if we do nothing,” Benoît Cœuré, president of the French Competition Authority, declared at the end of November.