The Federal Trade Commission (FTC) has announced its plans to closely examine the generative artificial intelligence investments and partnerships of several major companies. Among the companies under scrutiny are Alphabet Inc. (GOOGL, +1.94% GOOG, +1.98%), Amazon.com, Inc. (AMZN, +0.44%), Anthropic PBC, Microsoft Corp. (MSFT, +0.60%), and OpenAI Inc.
According to FTC Chair Lina Khan, this study is essential to ensure that the development and monetization of AI do not lead to unfair competition and the stifling of innovation. Recognizing the potential for new technologies to create new markets, the FTC aims to prevent any tactics that may hinder progress in this domain.
By leveraging this study, the FTC will be able to impose civil investigative demands, requiring companies to provide specific reports and written responses regarding their AI businesses. This initiative allows for a comprehensive examination of each AI company individually.
In light of recent developments, it is worth considering Microsoft's ownership stake of 49% in OpenAI and Alphabet's investment in Anthropic. Both of these corporations will likely be subject to closer scrutiny as part of this investigation.
Related: Delving into the recent Sam Altman drama and its surprising lack of impact on Microsoft's stock, one cannot help but wonder why Wall Street remains largely unaware of Microsoft's undisclosed deal with OpenAI.
