The Federal Trade Commission (FTC) and the Department of Justice (DOJ) are reportedly gearing up to launch antitrust investigations into Microsoft, OpenAI, and Nvidia, focusing on their influence within the artificial intelligence industry. These investigations will scrutinize the conduct of these powerful companies rather than their mergers and acquisitions.

Microsoft and OpenAI will be investigated by the FTC, while the DOJ will focus on Nvidia. The inquiries come amid a burgeoning generative AI market, with startups like OpenAI and Anthropic gaining momentum. Tech giants such as Google, Microsoft, Amazon, and Meta have been engaged in an AI arms race to integrate AI technology, with the market expected to surpass $1 trillion in revenue within a decade.

Microsoft's significant investments in OpenAI, totaling about $13 billion, underscore the importance of AI models, particularly for applications like the Copilot chatbot. These AI models require substantial investments in specialized chips, primarily sourced from Nvidia, which has seen substantial revenue growth due to demand from companies like Meta.

The news of the upcoming antitrust investigation follows concerns raised by current and former OpenAI employees regarding the rapid advancement of the AI industry without sufficient oversight or whistleblower protections. The FTC's decision to conduct a comprehensive study on AI industry heavyweights earlier this year further underscores regulatory scrutiny in this area.

FTC Chair Lina Khan emphasized the agency's commitment to examining the investments and partnerships between AI developers and major cloud service providers. Through its authority under Section 6(b) of the FTC Act, the regulator can conduct investigations and demand information from companies to ensure compliance with competition laws.

The investigations reflect growing concerns about the concentration of power in the AI industry and the potential for anti-competitive behavior among major players.