FTC Mandates AI Companies to Disclose Investments, Partnerships, and Meetings

The FTC is launching a new inquiry to uncover the intricate and often secretive relationships among leading AI companies. The agency has issued requests to major players including Alphabet, Amazon, Anthropic, Microsoft, and OpenAI. According to Chair Lina Khan, this investigation is intended to determine whether the investments and partnerships formed by dominant companies pose a risk to innovation and fair competition.

It's important to note that no wrongdoing is alleged at this stage. However, it raises eyebrows when firms already under scrutiny for antitrust issues, or those that have faced fines, seem intent on monopolizing upcoming technologies for their exclusive use.

This situation is evident in the competition between Anthropic—heavily backed by Google and Amazon with billions—and OpenAI, which has received similar financial support from Microsoft. What do these companies represent if not the ambitions of established tech giants? At least, that is the impression held by the general public and the FTC, which has honed its ability to identify the early signs of emerging market dominance.

Khan emphasized, “History shows that new technologies can create new markets and foster healthy competition. As companies race to innovate and monetize AI, we must take precautions against practices that could limit these opportunities.”

As tensions rise in this AI proxy battle, Google is reportedly investing $2 billion in Anthropic.

The FTC's requests to the aforementioned companies include:

- Details regarding partnerships, investments, and their strategic motivations.

- Insights into how these partnerships impact product release timing and processes.

- Discussion points from internal meetings.

- Any analyses conducted on the competitive effects of these transactions, including market share implications.

- Information on how these partnerships influence the competition for AI resources, such as computing power.

- Any documents shared with governmental entities, both domestic and international, related to these topics.

These inquiries may be dismissed by the companies as a mere fishing expedition into otherwise harmless business dealings. After all, why shouldn't corporations that have invested billions in AI also support emerging challengers that may differ in approach?

Following the news, Microsoft claimed that its deal with OpenAI is “promoting competition and accelerating innovation”—an assertion left for interpretation. Google, meanwhile, took the moment to indirectly criticize Microsoft with a subtle jab at its overall strategy, while both companies stated their willingness to engage with the inquiry.

Moreover, the FTC is hosting a summit today to address the opportunities and risks associated with AI for markets and startups. In her opening remarks, Khan pointed out that training AI models “further incentivizes surveillance,” a business model long adopted by tech giants like Google and Meta, adding that firms “cannot use claims of innovation to justify illegal activities.”

As the proverb goes, a timely inquiry can prevent future complications. The outcome of this investigation could lead to significant regulatory action, but it also serves as a clear signal that these corporations are under careful examination.