FTC Launches Inquiry into Generative AI Investments and Partnerships

Summary:

The Federal Trade Commission (FTC) issued orders to five companies (Alphabet, Inc., Amazon.com, Inc., Anthropic PBC, Microsoft Corp., and OpenAI, Inc.) requiring them to provide information about their investments and partnerships involving generative AI companies and major cloud service providers. The FTC's 6(b) inquiry aims to scrutinize these corporate partnerships and investments to better understand their impact on the competitive landscape. The agency is seeking information on the practical implications of these partnerships, analysis of their competitive impact, and competition for AI inputs and resources. The companies have 45 days to respond to the order. The FTC's mission is to promote competition, protect consumers, and educate the public.