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Google asks FTC to kill Microsoft-OpenAI cloud deal- The Information

Published 11/12/2024, 01:36
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Investing.com-- Google had recently asked the U.S. government to break up Microsoft’s exclusive cloud hosting deal with artificial intelligence major OpenAI, The Information reported on Tuesday. 

Google's (NASDAQ:GOOGL) recommendation was made after the Federal Trade Commission asked Google about Microsoft’s business practices, as part of a bigger investigation, the report said. 

Microsoft (NASDAQ:MSFT) currently has an exclusive deal with OpenAI to host the firm’s AI technology on its cloud servers. Firms that compete with the Redmond, Washington-based giant in the cloud industry also want to also host OpenAI’s technology. 

Microsoft is a major investor in OpenAI, and has already drawn antitrust scrutiny over its relationship with the AI start-up. The company had earlier this year passed on an observer seat on OpenAI’s board to stave off antitrust concerns. 

The FTC is already considering antitrust investigations into Microsoft, OpenAI and Nvidia (NASDAQ:NVDA) over their dominance in the AI industry, reports earlier this year had shown.

Google is also grappling with its own antitrust case, after a U.S. judge ruled earlier this year that the company holds an illegal monopoly over the internet search market. The ruling could eventually see Google being pushed into selling off its Chrome browser and Android operating system.

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