FTC Flags Big Tech-AI Startup Partnerships Over Antitrust Concerns

A new report highlights potential monopolistic practices and risks to competition in AI and cloud computing markets.

The FTC report scrutinizes major investments by Microsoft, Amazon, and Google into AI startups like OpenAI and Anthropic.
Key concerns include exclusivity agreements, 'circular spending' practices, and access to sensitive data that could harm fair competition.
Microsoft’s $13 billion investment in OpenAI involved significant Azure cloud credits, creating a feedback loop benefiting its own services.
The report warns of potential consolidation of AI talent and intellectual property within a few dominant firms, limiting smaller companies' opportunities.
The FTC report aims to inform policymakers about the competitive risks posed by these partnerships but does not specify immediate regulatory actions.