The Federal Trade Commission (FTC) is investigating Microsoft’s deal with artificial intelligence startup Inflection, which has raised concerns about the tech giant’s potential acquisition of the startup without proper disclosure. This probe is part of a broader effort by US antitrust regulators to scrutinize the rapidly growing AI industry, with the FTC and the Department of Justice (DOJ) working together to oversee AI giants such as Microsoft, Google, Nvidia, and OpenAI. The investigation comes as regulators are increasingly concerned about the potential for AI companies to engage in anticompetitive behavior, turbocharge fraud and scams, and exacerbate job displacement, discrimination, and fraud.
In the midst of this crackdown, the FTC and DOJ are nearing an agreement on how to jointly oversee AI giants, with the DOJ taking the lead on Nvidia and the FTC responsible for investigating Microsoft and OpenAI. This agreement signals a broader effort to bring existing laws to bear on the industry, as prospects for new US laws governing AI have dimmed.
As the US lags behind other countries in AI regulation, the EU’s AI Act has outlawed certain AI applications, and regulators are trying to prevent tech companies from monopolizing entire sectors of the economy.
