Google has approached the Federal Trade Commission (FTC), urging it to scrutinize Microsoft's exclusive arrangement with OpenAI, according to a report by The Information. The appeal comes as the FTC probes Microsoft's business practices in relation to its bundling of cloud and AI services.
The FTC's broader investigation, which began in late November, aims to evaluate how Microsoft integrates its cloud services with offerings like Office and Azure. Google's concerns specifically center on Microsoft's exclusive deal to host OpenAI's technology on its cloud infrastructure, which competitors argue could create an uneven playing field in the cloud computing market.
Google has reportedly raised concerns that the exclusivity agreement could limit competition and choice for businesses seeking to utilize OpenAI's tools, such as ChatGPT. The tech giant pointed out that customers relying on cloud services other than Microsoft Azure may face additional complexities when trying to access OpenAI's technology.
According to The Information's report, other cloud providers, including Amazon Web Services (AWS), share similar apprehensions, though they were not explicitly named in the investigation. The central issue lies in the exclusivity clause that ties OpenAI's groundbreaking AI models to Microsoft's infrastructure, potentially discouraging clients from exploring alternative cloud platforms.
Microsoft's collaboration with OpenAI dates back to 2019, when it invested $1 billion in the AI company. In 2023, Microsoft reinforced this partnership with a $10 billion investment, solidifying its position as OpenAI's exclusive cloud provider. OpenAI's advanced models, including GPT and DALL-E, are currently hosted on Microsoft's Azure platform, with integrations into services such as Bing and Office.
The FTC's investigation also includes scrutiny of Microsoft's bundling practices, which combine cloud services with other products like security tools. Google's submission reportedly underscores the importance of ensuring fair competition in the burgeoning AI and cloud markets, particularly as these technologies become increasingly critical to businesses and consumers.
Microsoft, OpenAI, and the FTC have yet to publicly comment on Google's request. However, Microsoft's history of exclusive deals has often sparked competitive concerns, particularly in rapidly evolving markets.
