Google Calls for Breakup of Microsoft's Exclusive Deal with OpenAI
Investing.com– Google has recently requested the U.S. government to dismantle Microsoft’s exclusive cloud hosting agreement with OpenAI, as reported by The Information on Tuesday.
Google's (NASDAQ:GOOGL) recommendation followed inquiries from the Federal Trade Commission (FTC) regarding Microsoft’s business practices amid a broader investigation.
Currently, Microsoft (NASDAQ:MSFT) holds an exclusive agreement with OpenAI to host the company’s AI technology on its cloud servers. Competitors in the cloud industry are also eager to host OpenAI’s technology.
Microsoft is a significant investor in OpenAI and has faced antitrust scrutiny concerning its ties to the AI startup. Earlier this year, the company declined an observer seat on OpenAI’s board to avoid further antitrust complications.
The FTC is examining potential antitrust violations by Microsoft, OpenAI, and Nvidia (NASDAQ:NVDA) due to their dominant positions in the AI sector.
Meanwhile, Google is contending with its own antitrust case after a U.S. judge ruled that it maintains an illegal monopoly in the internet search market. This ruling could lead to Google being compelled to divest its Chrome browser and Android operating system.
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