When you say AI, you say Nvidia, Microsoft and OpenAI. The American regulators have also noticed this and there will be an investigation.

The New York Times writes that Nvidia, Microsoft and OpenAI can expect a visit from American regulators soon. The DOJ (Department of Justice) and the FTC (Federal Trade Commission) have reportedly mutually agreed to split the investigation between themselves. The first will put Nvidia to the test, while the FTC will focus on the OpenAI-Microsoft tandem.

It is no coincidence that these three companies were chosen. They are the conductors of the AI ​​orchestra. Nvidia has a quasi-monopoly on GPUs and specialized AI hardware. OpenAI sparked the current hype about artificial intelligence with the launch of ChatGPT a year and a half ago, while Microsoft is trying to capitalize on it with Copilot.

NVIDIA

No company is benefiting more from the hype surrounding generative AI than Nvidia. Nvidia’s GPUs are in high demand and the company is posting billions in profits quarter after quarter. Nvidia’s market value has now exceeded the $3 trillion mark and only Microsoft is worth more according to the stock market. Nvidia’s success earned CEO Jensen Huang rock star status, as our reporter witnessed from the front row at Computex.

The DOJ will now investigate whether the AI ​​market has become too dependent on Nvidia. In addition to hardware, the company also offers software to optimize performance. Assistant Attorney General Jonathan Kanter told the Financial Times that the investigation is looking at “monopolistic bottlenecks and the competitive landscape,” including the way the company’s software locks customers into using its chips, as well as the way Nvidia distributes those chips to customers.

Regulators now want to act to prevent smaller providers from being shut out of the market, Kanter added.

Microsoft and OpenAI

FTC will investigate the AI ​​tandem OpenAI and Microsoft, a relationship that is raising questions around the world. On paper, Microsoft owns 49 percent of OpenAI’s shares and has already pumped at least thirteen billion dollars into the company. The European Commission recently decided to close the investigation, but the FTC does not seem to be fully convinced yet.

Another Microsoft deal is also attracting attention from the FTC. In March, the company welcomed Inflection’s CEO and other employees and paid $650 million for Copilot to use the startup’s technology. The panel suspects Microsoft hasn’t been playing by the rules.

Under US law, companies are required to have takeover offers reviewed by the FTC if they have a market value of more than $120 million. The takeover cannot take place until the committee gives the green light. FTC suspects that Microsoft arranged the deal in such a way that it could acquire Inflection without having to obtain prior approval.

If the FTC concludes after the investigation that violations have occurred, Microsoft could face a hefty fine. The committee could also demand that the deal be withdrawn. In a response to American media, Microsoft states that it has complied with antitrust laws.