The Federal Trade Commission (FTC) has initiated an investigation into investments and partnerships related to generative artificial intelligence (AI). The FTC has issued orders to five companies—Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.—to provide information as part of this inquiry.
As stated in an FTC press release, the orders mandate these five companies to supply the agency with data pertaining to their recent investments and collaborations with generative AI entities and major cloud service providers.
The press release further elaborates that the FTC has issued these orders under Section 6(b) of the FTC Act. This section empowers the commission to conduct studies that can provide insights into market trends and business practices, potentially leading to future regulatory action. In this context, the FTC aims to evaluate these corporate alliances and investments with AI providers to enhance its comprehension of how such relationships could impact competition.
According to the same press release, the companies that have received these orders are involved in three separate multi-billion-dollar investments. The information sought by the FTC is specifically related to these investments or partnerships—the agreements underpinning them; their strategic rationale; practical implications; and competition for AI inputs and resources. These companies have been given a 45-day window to submit their responses.
"History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity," said FTC Chair Lina M. Khan in the press release. "Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition."
