The US has paved the way for antitrust inquiries against Microsoft, Nvidia, and OpenAI. Many believe it was the right thing to do when the AI segment is gaining pace across the globe. Many from the industry have countered that thought, briefly explaining that it, in a way, slows down innovation.
Clearing the way for inquiries brings two agencies together—the Justice Department and the Federal Trade Commission. They struck a deal in the past week to split the overall task. For instance, the Justice Department will look into the investigation against Nvidia, and the Federal Trade Commission will investigate the remaining two companies. The objective is to ensure that there has been no breach of law or violation of antitrust law.
This is not the first time companies have come under the radar of these departments. Google, Amazon, Apple, and Meta have been formerly tried and tested by relevant authorities. They were even found guilty of violating anti-monopoly laws. Thereby attracting heavy fines from the departments.
Nvidia, Microsoft, and OpenAI attempted to escape the chase. But the Biden administration has finally seized them. What triggered an accelerated pace was the commencement of human-like text, videos, and photos, among other elements. This pertains to generative AI, and regulators have expressed their desire to stay ahead of these developments.
Rightly so, generative AI can hamper any prevailing situation.
A case on OpenAI will focus on checking if the company has harmed its ecosystem via data collection. Microsoft will have to come clean about its investments in OpenAI, while other companies will have to share details about their investments in younger companies working in AI—just like them.
The US is currently behind the European Union. The EU has taken the lead with a landmark judgment that dates back to 2023. Officials, in 2023, agreed to regulate developments in AI with a focus on how AI is being used. That entails the risk associated with developments in AI.
The development in the US comes after both departments reached the final lap of their discussions. The agencies were concerned about the companies they would inquire about and why they would inquire about them. The objective is to look into their potential problems and resolve them or eliminate them before they do any harm.
All three companies in the discussion have been under the radar for a long time. They have managed to make major advancements at a fast pace. While innovation is welcomed in every nation, it cannot come at a cost that harms the users and the nation. Industry players had also earlier hinted at their concerns about the growing dominance of Nvidia in the market.
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