FTC Launches Inquiry into Tech Giants' Partnerships with AI Startups

The probe into Microsoft, Amazon, and Alphabet's investments in OpenAI and Anthropic could mark a major regulatory showdown.

The FTC has launched an inquiry into the multi-billion dollar partnerships between Microsoft, Amazon, Alphabet and generative AI startups OpenAI and Anthropic.
Microsoft owns a 49% stake in OpenAI, Google agreed to invest $2 billion in Anthropic, and Amazon agreed to invest up to $4 billion in the company.
Close to half of the capital being poured into generative AI is coming from six companies alone, according to PitchBook.
The FTC's inquiry is seen as a direct shot at the future of the tech giants' businesses, potentially marking the start of the biggest Silicon Valley versus DC showdown since the effort to break up Bill Gates’ Microsoft nearly three decades ago.
Regulatory interest in OpenAI appears to be heightened after the temporary ouster of its CEO, Sam Altman, by the board last fall, when Microsoft swept in with an offer to bring on the OpenAI team as a subsidiary of Microsoft.