US senators seek answers on Google and Microsoft AI deals which may 'discourage competition'

Date:
Tue, 08 Apr 2025 17:22:00 +0000

Description:
US Senators are worried Microsoft/OpenAI and Google/Anthropic deals could
harm market competition.

FULL STORY ======================================================================Two US Senators have asked tech giants for more information on AI deals Even partial acquisitions could harm competition The FTC also noted potential competition issues

Two tech industry titans that have been the subjects of many an anticompetitive investigation are now being questioned over their
partnerships with AI companies.

Democratic US Senators Elizabeth Warren and Ron Wyden are reportedly
demanding information about the deals Google and Microsoft have with
companies at the forefront of artificial intelligence.

The concern is that these strong partnerships could impact competition within the industry, violate antitrust laws, and ultimately lead to both fewer choices and higher prices for customers. Microsoft and Google questioned over AI deals

In question are Microsofts deal with OpenAI and Googles deal with Anthropic, with the Senators seeking financial details of payments made by AI firms to their cloud providers and information on whether the companies have exclusive rights to certain AI models.

Warren and Wyden also want to know whether Google or Microsoft have any intentions to acquire their respective AI partners.

Partnerships between CSPs and AI developers, if left unchecked, may
accelerate consolidation of the AI sector, ultimately driving up prices and choking off innovation, the two said in their letter to Google CEO Sundar Pichai and Anthropic CEO Dario Amodei (via Reuters ), and in their second letter to Microsoft and OpenAIs CEOs, Satya Nadella and Sam Altman.

This isnt the first time these specific companies have come under fire for their involvement with leading AI firms.

A separate January 2025 report by the Federal Trade Commission had already studied such partnerships, raising concerns about potential acquisitions
which could spell out disaster for competition.

As noted in the FTC and Department of Justice (DOJ)s merger guidelines, even partial acquisitions may present 'significant competitive concerns' because
of the effects on firms incentives and strategy, the Senators continue.

TechRadar Pro has contacted all four companies for comments and context, but we have not received any responses as yet.

Via Reuters You might also like These are the best AI tools and best AI writers Check out our roundup of the best cloud hosting providers Microsoft says it found out about FTC probe by watching the news



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Link to news story: https://www.techradar.com/pro/us-senators-seek-answers-on-google-and-microsoft -ai-deals-that-could-discourage-competition


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